Debt snowball vs avalanche

Two orders, one mechanism. Both methods pay every minimum and direct all extra money at one target debt; both roll a cleared debt's minimum into the next target. Snowball targets the smallest balance — the earliest finished account. Avalanche targets the highest APR — the least total interest. The CFPB describes both in its debt-reduction guidance; neither is “correct.” They are prices for different things, and the honest move is to show you both prices.

The same debts, both ways

Three example debts, deliberately chosen so the two methods disagree — a store card at $6,000 and 26.99% ($150 min), a credit union loan at $900 and 14.99% ($35 min), and a Visa at $3,000 and 21.99% ($75 min), with $150 extra a month. Snowball starts with the small loan; avalanche starts with the store card. Computed by the same engine as the planner, not typed in by hand:

	❄️ Snowball	🏔️ Avalanche
First debt cleared	February 1, 2027	November 1, 2028
Debt-free date	July 1, 2029	June 1, 2029
Total interest	$4,205.06	$3,742.63

In this example, avalanche costs $462.43 less interest and finishes 1 month sooner, while snowball clears its first account no later than avalanche does. Your debts will produce different numbers, which is why the planner exists.

Run both with my debts My debt-free date

Debt snowball ordering — pay minimums on everything; direct all extra at the SMALLEST balance; roll freed minimums into the next debt. Verified 2026-07-31 against CFPB — How to reduce your debt (snowball usually costs somewhat more interest than avalanche; the comparison tool shows the exact difference for your debts)
Debt avalanche ordering — pay minimums on everything; direct all extra at the HIGHEST APR; roll freed minimums into the next debt. Verified 2026-07-31 against CFPB — How to reduce your debt

Frequently asked questions

Which saves more money, snowball or avalanche?

Avalanche, always or at worst equally — directing extra money at the highest APR is mathematically the interest-minimizing order among constant-budget plans. The real question is by how much for YOUR debts: when your rates are close together the gap is often trivial, and the planner computes it exactly.

Why do people still choose the snowball?

Because the first fully-cleared account arrives sooner, and for many people that early win is what keeps the plan alive. A plan you abandon saves nothing. The CFPB describes both methods without declaring a winner, and this site takes the same position: we show the price of each order and you choose.

Do both methods really roll freed-up minimums forward?

They do — that rolling is the method, whichever order you pick. When a debt clears, its minimum payment joins the attack on the next debt, so your total monthly outlay never shrinks until the last debt ends. Our engine pins this with tests, because calculators that quietly drop freed minimums overstate your payoff time.

Can I mix the two methods?

Yes — the planner has a custom order. A common hybrid is clearing one small balance first for the quick win, then switching to rate order. The comparison stays on screen, so you can see exactly what your hybrid costs against pure avalanche.

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