Anti-debt strategy: snowball vs. avalanche – what to choose and when

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It’s hard to go through life avoiding debt – so often we need to borrow money, particularly for the big things in life, like a home and a car. That said, it CAN be equally simple to repay that money and find yourself debt-free. This allows you to plan your future and enjoy your present, with calmer, worry-free days and less funds wasted on paying interest.

Paying down debt works best when you have a plan that you’ll stick with long enough to cross the finishing line. Before we compare methods, it’s important to be honest with yourself about the situation you’re in. You’ll need to know exactly where all of your debts are, how much you owe and always read the small print to find out what T&C apply before you start making a repayment plan.

Debt reduction has two classic tactics: snowball and avalanche. One maximises momentum; the other minimises interest cost. Both can be a winning strategy; it just depends on your personal situation and the different conditions of your debts.

IMPORTANT: If you’re struggling with your finances, be sure to reach out for free debt support from the National Debtline as soon as possible.

Here’s a comparison of both methods so you can pick a path and start moving towards a debt-free life today:

How each method works, step by step

This section lays out the mechanics in plain language, so you can see how payments flow and why results feel different from month to month. The idea is simple: organise balances, make one extra payment and repeat until you’re out of debt.

The Snowball is the better “behaviour first” plan; the Avalanche is the better “maths first” plan. If your biggest risk is quitting, favour momentum. If your biggest cost is interest, favour APR targeting.

Which one fits your situation? A practical selector

Now let’s translate the comparison into real-life decisions. Use the cues below to see where you land, then commit to one path for at least three months before reassessing. That way, you’ll give your plan enough room to show results.

• Choose Snowball if:
  
  • You’ve tried paying debt before and stopped because progress felt invisible.
    
  • You carry many small balances (store cards, buy-now-pay-later agreements, lingering bills) that create decision fatigue.
    
  • Your highest APR debt isn’t dramatically higher than the rest (say, most are clustered around similar rates).
    
  • You want to feel rewarded with fast milestones – knocking out a £250 or £600 balance in just a few weeks keeps you engaged.
    
• Choose Avalanche if:
  
  • One or two debts have much higher APRs than the others (e.g. 28% vs. 14%).
    
  • You’re comfortable waiting a few months for the first “paid in full” moment because saving interest is its own reward.
    
  • Your balances are medium-to-large and spread across similar sizes; in this instance, ordering by APR will make you the most savings on interest costs.
    
  • You already automate bills and don’t need frequent emotional wins to continue.
    

Pick the column that sounds most like your habits today, not the imaginary future version of yourself. A “good fit” plan followed for a year beats a “perfect on paper” plan that stalls by month two.

Worked example: what the numbers feel like month to month (no table needed)

To see the difference, imagine three cards:

• Card A: £600 at 19% APR
  
• Card B: £1,900 at 22% APR
  
• Card C: £2,500 at 15% APR
  

You can pay £350 total each month (minimums are £25 each). With the Snowball, you’ll wipe Card A quickly—maybe within three months, freeing about £100–£125 of monthly cash-flow (minimum plus extra) to slam into Card B. Your motivation spikes early. Total interest, however, runs higher than avalanche because you didn’t attack 22% first.

With the Avalanche, extra money targets Card B from day one. Your first paid-off moment takes longer, which can feel slow, but interest savings accumulate as you’re paying interest on a smaller and smaller balance each month. Over a year, you’ll usually see a smaller remaining balance compared with snowball, all else equal.

The point isn’t to crown a universal winner; it’s to match the journey to your personality. If you’re wired for streaks and fast feedback, Snowball’s rhythm prevents drop-off. If you’re comfortable watching interest costs shrink quietly while you grind, Avalanche tends to leave you with more money in your pocket when the dust settles.

Hybrid and pro moves that keep either method humming

Even the best strategy can use a few upgrades. These small tweaks work with Snowball or Avalanche without changing the core rules:

1. Automate the essential, schedule the extra. Set every minimum to auto-pay on payday. Then schedule a second, separate transfer for your “extra” amount the day after. This keeps you from spending the surplus by accident.
   
2. Round up on purpose. If your extra is £275, make it £300. The painless £25 matters more than it seems over 12–18 months.
   
3. Throw found money at the target debt. Refunds, side-hustle income, or a small profit from selling your unwanted belongings —send any extra money you make straight to the current target balance. Momentum or interest savings both improve.
   
4. Re-rank strategically once. If a balance jumps because a 0% promo expired, re-check your ordering. For snowballers, it might still be smarter to finish a nearly-dead small debt before switching; for avalanchers, the new APR might deserve immediate priority.
   
5. Freeze temptation. Put high-APR cards on ice—literally in a drawer or a freezer bag—so your day-to-day spending doesn’t undo progress.
   

What to expect emotionally (and how to keep going)

Debt payoff isn’t just a spreadsheet. The Snowball delivers frequent dopamine hits—each closed account is a scoreboard moment. The Avalanche offers a subtler satisfaction: you notice interest charges shrinking and time-to-zero falling as compounding works for you instead of against you.

Whichever path you choose, set a 90-day check-in. At that mark, calculate:

• Balances then vs. now
  
• Total interest charged
  
• How you felt following the plan (stressed? steady? proud?)
  

If interest-lowering is good but your motivation is fading, slide from Avalanche to Snowball without guilt. If the Snowball kept you moving but you’re now steadier, upgrade to Avalanche to reduce interest during the final half of your journey.

Final thought: pick a plan this week, not “someday”

Debt is a game where the house (interest) takes a little from you every month you wait. You don’t need a perfect spreadsheet or an accounting degree to start. You just need:

• A ranked list (by balance or APR),
  
• One automated extra payment,
  
• And a calendar reminder three months out to reassess.
  

I hope working our way through these two methods has made it easier for you to start tackling your debts and get started on the path to becoming debt-free. If you’re the type who loves quick scoreboard wins, let the snowball get you rolling. If you’re calm with delayed gratification and hate paying interest, let the avalanche chip away at the costliest mountain first.

Either way, you’re moving from scattered payments to a deliberate plan—and that’s how the tide turns. Let me know in the comments below how you get on, and I’d love to hear your hacks for making extra money to throw at your debts. 🙂

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