Debt Avalanche vs Snowball: A Month-by-Month Comparison

Say you owe money in three places: $1,200 on a store card, $6,000 on a credit card and $9,000 left on a car loan. Your minimum payments add up to $470 a month, and you've worked out that you can afford $670. The question is where the extra $200 should go.

There are two popular answers. The avalanche method sends every spare dollar to the debt with the highest interest rate. The snowball method sends it to the smallest balance. Most articles describe the two and stop there. This one runs both plans on the same debts, month by month, using the same arithmetic as our Debt Payoff Calculator, so you can see exactly what each one costs and what each one gives you.

The three debts

• Store card: $1,200 at 9.99% APR, minimum $40 a month.
• Credit card: $6,000 at 24.99% APR, minimum $180 a month.
• Car loan: $9,000 at 7.5% APR, payment $250 a month.

Interest is charged monthly at the APR divided by 12, and the minimums stay the same throughout. In both plans, you pay every minimum each month and put the remaining $200 towards one target debt. When a debt is paid off, its payment joins the extra and moves on to the next target. That roll-over is what makes either method speed up over time.

To get a feel for the numbers: in the first month the credit card alone charges 6,000 × 24.99% ÷ 12 = $124.95 of interest. Of its $180 minimum, only $55.05 actually reduces the balance.

Month by month: the avalanche

The avalanche targets the credit card first, because 24.99% is the highest rate. Every month it gets its $180 minimum plus the $200 extra.

• Month 20: the credit card is paid off, with money to spare. What's left of that month's payment goes straight to the next-highest rate, the store card at 9.99%.
• Month 21: the store card is gone too. Its own $40 minimums had already brought it down to about $585 by month 19, so the freed-up money clears it within two months.
• Month 28: the car loan, with all $670 going to it at the end, is paid off. You're debt-free.

Total interest: $2,534.81.

Month by month: the snowball

The snowball ignores rates and targets the smallest balance, the $1,200 store card.

• Month 6: the store card is paid off. That's a whole debt gone in half a year, and one fewer bill to think about.
• Month 22: the credit card, now getting $420 a month, is paid off. All the while it has been charging 24.99%.
• Month 29: the car loan is paid off.

Total interest: $2,771.68.

What the difference really is

Put side by side, the avalanche costs $236.87 less and finishes one month sooner. The snowball's advantage is timing: your first debt disappears in month 6 instead of month 20.

That trade-off is the whole decision. The avalanche is the cheaper route on paper. The snowball pays you in early wins, which matters if you know you're more likely to stick with a plan when you can see it working. A plan you abandon in month 8 costs far more than $236.87.

The bigger lever: how much you pay

The method matters less than the monthly amount. Here's the same three debts with different amounts on top of the minimums:

With no extra at all, the two methods are identical, because there's nothing to aim. Adding $200 a month saves around $2,600 to $2,900 of interest whichever method you pick, more than ten times the gap between the methods. If you're torn between the two, finding another $50 or $100 a month will usually do more than switching methods.

Paying only the minimum on one debt is the slowest option of all. On its own, the $6,000 credit card at $180 a month takes 58 months and $4,346.71 of interest to clear.

When the two methods come out almost the same

The avalanche's advantage depends on how far apart the interest rates are. Take two cards: Card A with $1,500 at 21.99% (minimum $45) and Card B with $4,000 at 22.99% (minimum $120), with $150 a month extra.

• Avalanche (Card B first): 22 months, $1,232.66 of interest. First card cleared in month 18.
• Snowball (Card A first): 22 months, $1,251.85 of interest. First card cleared in month 9.

The snowball costs $19.19 more over almost two years but clears a card nine months earlier. When rates are this close, the snowball's early win comes almost free.

Questions people ask

Should I stop paying the minimums on the other debts?

No. Both methods assume every minimum is paid every month. Missing a minimum can bring late fees and hurt your credit record, which would undo the point of the plan.

What if I add new spending to a card I'm paying off?

Then the plan stops working, because the balance you're aiming at keeps moving. Many people pause using the cards they're clearing until the plan is finished.

What if my interest rates change?

Re-run the plan with the new rates. For the avalanche, a change can alter which debt comes first. The snowball only cares about balances, so its order stays the same.

Is there a "right" answer?

If you'll stick with either, the avalanche costs less. If motivation is the real risk, the snowball's quick wins may be worth the extra interest. A middle path is to start with the snowball to clear one small debt quickly, then switch to the avalanche. The Debt Payoff Calculator shows both plans side by side for your own numbers, so you can see the actual gap before you choose.

If the numbers don't add up

If even the minimums are a struggle, a payoff method won't fix that on its own. Free or non-profit help exists in each of our main markets:

• United States: the Consumer Financial Protection Bureau notes that credit counseling organizations are usually non-profit and can advise you on your money and debts. It suggests getting any fees in writing first.
• United Kingdom: GOV.UK points to MoneyHelper, which has information on free debt advice services.
• Canada: the Financial Consumer Agency of Canada says no reputable credit counselling agency will charge you for the first meeting, and lists questions to ask before you sign up.
• Australia: Moneysmart describes financial counselling as a free and confidential service from not-for-profit community organisations, reachable through the National Debt Helpline.

To check how your debts compare with your income, the Debt-to-Income Calculator gives you the ratio lenders look at.

Last reviewed: 11 October 2026. The debts and rates in this guide are examples. The help services above were checked on their official pages on that date. This is general information, not financial advice.