What is the debt snowball method?

You pay minimums on everything, then throw every spare dollar at your smallest balance until it is gone. When it clears, that payment rolls onto the next-smallest debt. The wins come fast, which keeps you motivated, the trade-off is you may pay a little more interest along the way.

What is the debt avalanche method?

Same minimums, but your spare money goes to the debt with the highest interest rate (APR) first. When it clears, the payment rolls to the next-highest APR. Avalanche almost always pays the least total interest and is usually the fastest, though the first win can take longer.

Which is faster, snowball or avalanche?

Avalanche is usually faster and cheaper because it kills your most expensive interest first. Snowball can feel faster because you clear whole debts sooner. The gap is often small, the method you actually stick with beats the one that looks best on paper.

Which method saves more interest?

Avalanche, by paying the highest APR first, mathematically minimises total interest. Snowball costs a bit more interest in exchange for quicker psychological wins. A payoff calculator shows the exact dollar difference for your debts.

Should I use snowball or avalanche?

If you need momentum to stay consistent, snowball. If you want the lowest cost and can stay the course without early wins, avalanche. Either beats paying only minimums, the key is adding a fixed extra amount every month and never letting a freed-up payment go idle.

How do I calculate my debt-free date?

List each debt’s balance, APR and minimum, decide an extra monthly amount, and simulate the payments forward month by month, interest accrues, payments reduce the balance, and freed-up payments roll to the next debt. Wiggle Budget does this for all your debts at once and charts your debt-free date for both methods.

Debt Snowball vs Avalanche, Which Pays Off Faster? (2026)

Compare the debt snowball (smallest balance first) and debt avalanche (highest APR first) methods, how each works, which is faster, which saves more interest, and how to calculate your debt-free date for all your debts at once with Wiggle Budget.

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Debt snowball vs avalanche: which method pays off debt faster and saves the most interest

Debt snowball vs avalanche: which method pays off debt faster and saves the most interest