Is the debt snowball or avalanche better?

What the two methods are

Both methods assume you pay the minimum on every debt and put any extra toward one chosen debt at a time. The snowball method targets the smallest balance first, while the avalanche method targets the debt with the highest interest rate first.

They differ only in which debt gets the extra payment, not in the idea of focusing extra money on one debt.

The trade-off between them

The avalanche method generally reduces the total interest paid, because the most expensive debt goes first. The snowball method clears individual debts sooner, which can build momentum and motivation even if it costs a little more in interest overall.

In other words, one leans on the maths and the other leans on behaviour.

How to pick

If staying motivated is your main challenge, the quick wins of the snowball can be worth the small extra cost. If minimising interest matters most and you can stay consistent, the avalanche is usually the cheaper path. Either beats paying only minimums.

This article is general educational information about money management. It is not financial, investment, tax or legal advice, and it is not a recommendation of any product. Rates, terms, fees and rules vary by provider, product and country, and can change; confirm the specifics for your own situation, and where needed, with a qualified professional.