Debt snowball vs debt avalanche: which should you use?
By The Money Sheets · Last checked 22 October 2026
Both methods work the same way: pay the minimum on every debt, then put every spare penny of your monthly budget on one target debt. When it's cleared, roll its payment onto the next. The only difference is the order.
| Debt snowball | Debt avalanche | |
|---|---|---|
| Pay off first | The smallest balance | The highest interest rate (APR) |
| Strength | Quick wins keep you motivated | Usually costs the least interest |
| Weakness | Can cost more interest | The first win can take longer |
Worked example
Three debts and a total budget of £400 a month (the minimums add up to £230):
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Credit card | £3,500 | 24.9% | £90 |
| Store card | £900 | 19.9% | £30 |
| Car loan | £4,000 | 7.9% | £110 |
| Plan | Debt-free in | Total interest | First debt cleared |
|---|---|---|---|
| Snowball | 25 months | £1,372.13 | Store card, month 5 |
| Avalanche | 25 months | £1,315.83 | Credit card, month 16 |
| Minimums only (£230/month) | 81 months | £4,650.36 | month 42 |
In this example the avalanche saves £56.30 of interest compared with the snowball, but the snowball clears its first debt in month 5 instead of month 16. Both are far better than paying only the minimums, which takes 81 months and costs £4,650.36 in interest.
How we worked it out: interest added monthly at APR ÷ 12, minimums held fixed, the whole £400 paid every month. Real cards often lower the minimum as the balance falls, and rates can change, so your own figures will differ.
Which should you choose?
- If your rates are close together, the difference is small: pick the one you'll stick with.
- If one debt has a much higher rate, the avalanche usually saves more.
- If you've struggled to stay motivated, the snowball's early win can be worth a little extra interest.
If you're struggling to make minimum payments, free, impartial debt advice is available. In the UK, the government's MoneyHelper service can point you to free debt advice.
Compare your own debts
Our Debt Snowball & Avalanche Planner runs all three plans side by side for up to 25 debts (40 in Pro), with your debt-free date, interest saved and charts, in any currency.
This guide is general information, not tax, legal or financial advice.
Debt Snowball & Avalanche Planner
Enter your debts once and compare the snowball, avalanche and minimum-payments-only plans side by side: your debt-free date, the interest each plan costs, and which debt to pay next.
See the Debt Snowball & Avalanche Planner