Debt Snowball vs. Avalanche: Which Pays Off Debt Faster? (Worked Example)
If you have more than one debt, the order you pay them off in matters. The two popular methods are the debt snowball and the debt avalanche. Both start the same way: pay the minimum on every debt, then put every extra dollar on one target debt. When that debt is gone, its minimum payment "rolls over" to the next target.
- Snowball: target the smallest balance first.
- Avalanche: target the highest interest rate first.
A worked example
Here are five debts, with $250 extra each month on top of the minimums, starting in January 2027:
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Credit card A | $4,200 | 22.9% | $110 |
| Credit card B | $1,350 | 18.5% | $40 |
| Car loan | $9,800 | 6.9% | $245 |
| Student loan | $15,400 | 5.0% | $170 |
| Medical bill | $620 | 0% | $50 |
The results
| Minimums only | Snowball + $250 | Avalanche + $250 | |
|---|---|---|---|
| Months to debt-free | 63 | 41 | 41 |
| Total interest | $7,008 | $3,905 | $3,766 |
| First debt gone | Month 13 | Month 3 | Month 13 |
Three lessons:
- The extra $250 matters most. Either method cuts almost two years and over $3,000 of interest compared with paying minimums.
- Avalanche costs less. Here it saves $139 because the 22.9% card shrinks faster. The gap grows when your rates are far apart and your balances are large.
- Snowball feels better sooner. The medical bill is gone in month 3 and card B in month 7. Many people stay motivated because of these early wins, and the method that you stick with beats the one you abandon.
How to choose
Pick avalanche if you are motivated by the math and your high-interest debt is also large. Pick snowball if you have several small balances and want quick wins. If two debts have similar rates, start with the smaller one. You get the early win at almost no cost.
Run your own numbers
Your result depends on your exact balances, rates and extra payment. A payoff spreadsheet can simulate every month for you, including the rollover of freed-up minimums, and show the date you become debt-free under each method.
See the template · $8