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Snowball or avalanche? Picking a debt payoff plan you’ll stick with
The best debt plan is the one you keep doing. Here is how to choose between the two most popular methods.
When I paid off $38,000, I switched methods halfway through. That’s fine. What matters is having a clear order and a monthly number you can hit.
The snowball method
List debts from smallest balance to largest. Pay minimums on everything and throw every extra dollar at the smallest. When it’s gone, roll that payment into the next one.
It works because quick wins feel good, and motivation is what keeps people going in month eight.
The avalanche method
List debts from highest interest rate to lowest and attack the most expensive first. You’ll pay less interest overall, though the first win can take longer.
How to choose
Pick snowball if you’ve started and stopped before
Pick avalanche if one card has a much higher rate than the rest
Either way, stop adding new debt while you pay off the old
Write your list, choose one, and set your first payment date today.