❄️ The Debt Snowball vs. Avalanche Method: Which Works Best for You?
💭 First: What Are These Methods Solving?
Debt is a common reality in the UK — from credit cards and overdrafts to student loans and car finance. But what most people don’t have is a clear system for actually paying it off.
That’s where the Snowball and Avalanche methods come in. Both work. The key is choosing the one that fits you best.
❄️ What Is the Debt Snowball Method?
The Snowball Method focuses on paying off your smallest debts first, regardless of interest rate.
How to Use It:
List all your debts from smallest to largest balance.
Make minimum payments on all.
Throw any extra money at the smallest debt.
Once that’s gone, roll that payment into the next smallest one.
Repeat until you're debt-free.
Example:
Imagine you have:
£300 on a credit card
£800 overdraft
£2,500 loan
You’d start with the £300 credit card. When it’s paid off, you'd use that money to attack the overdraft, then finally the loan.
Why It Works:
You get quick wins, which builds motivation.
Seeing progress boosts your confidence.
Ideal if you’ve struggled to stay consistent.
🔺 What Is the Debt Avalanche Method?
The Avalanche Method targets the highest interest rate first, not the balance.
How to Use It:
List your debts from highest to lowest interest rate.
Make minimum payments on all.
Put extra cash toward the highest-interest debt first.
Once that’s done, move to the next one.
Example:
Using the same debts:
£300 credit card at 20% APR
£800 overdraft at 15% APR
£2,500 loan at 7% APR
You’d still start with the credit card (because of the interest), then tackle the overdraft, and finish with the loan.
Why It Works:
You’ll pay less total interest.
It’s mathematically more efficient.
Best for those focused on long-term savings.
🆚 Snowball vs. Avalanche: How to Choose
Here's how they compare:
Snowball Pros:
Quick wins build momentum
Keeps motivation high
Simple and satisfying
Snowball Cons:
You may pay more in interest overall
Not always the fastest route mathematically
Avalanche Pros:
Saves more money in the long run
Reduces debt faster overall
Prioritises interest cost
Avalanche Cons:
Progress may feel slower at first
Can be harder to stay motivated early on
✅ Which One Is Right for You?
Ask yourself:
Do I need early motivation to stay on track? → Try Snowball
Do I want the most cost-efficient method? → Go for Avalanche
Do I want both? → Start with snowball for momentum, then switch to avalanche
There’s no "wrong" answer — just the one you’ll actually follow through with.
💡 Extra Tips to Make Either Method Work
Automate minimum payments to avoid late fees
Use bonuses, side income or tax refunds to speed things up
Check your credit score and avoid taking on new debt
Track your progress weekly to stay engaged
Use UK tools like MoneyHelper or StepChange for free advice
📌 Final Thought
Paying off debt isn’t just about numbers — it’s about building momentum and staying consistent.
Whether you roll with the Snowball or ride the Avalanche, taking action is what really matters. Once you commit to a method and stick with it, you’ll be surprised how quickly things begin to shift.
You’re not falling behind — you’re just getting started. 👣
