Debt Snowball vs Avalanche: Which Should You Use?

The snowball method pays off your smallest debt first, for a quick win. The avalanche method targets the highest interest rate first, to keep the total interest you pay as low as possible. Both have keen supporters, and the research on which works better in practice is mixed.

Avalanche costs less whenever your rates differ, because the most expensive debt goes first. Snowball clears a balance sooner, and many people find that early win is what keeps them going. So the honest answer is that it depends on you.

The best method is the one you will actually follow. The debt page in Personal offers four strategies: Avalanche, Snowball, Biggest debt first and Minimums only. Each comes with a short note on who it suits best, and the page shows your debt-free date and the interest you save compared with paying only the minimums. You can change strategy whenever you like and the figures update to match.