Snowball vs Avalanche: Which Debt Method Actually Wins?
One saves the most money. The other helps you actually finish. The answer depends on you.
When you have multiple debts, two strategies dominate:
Avalanche — pay minimums on everything, throw extra at the highest interest rate first. Mathematically optimal: saves the most in total interest.
Snowball — pay minimums on everything, throw extra at the smallest balance first. Psychologically optimal: gives you a quick win and momentum.
Studies (Northwestern's Kellogg School) show people who use snowball actually pay off their debt more often, because the early wins keep them engaged. If you're disciplined, go avalanche. If you've started and stalled before, go snowball.
Run both in our Debt Snowball Calculator and Debt Avalanche Calculator to see your exact numbers.
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