Debt snowball vs avalanche
Both methods pay the minimum on every debt and send the extra money to one target. They differ in which debt is the target.
The two methods
- Snowball: extra money goes to the smallest balance first. You close accounts sooner, which many people find motivating.
- Avalanche: extra money goes to the highest interest rate first. It usually costs less interest overall.
Example
Card A: 500 at 24%. Card B: 3,000 at 29%. Snowball attacks A first; avalanche attacks B first. Which one is better depends on the numbers and on what keeps you consistent.
What you need to compare them
- Balance, interest rate and minimum payment of each debt.
- The extra amount you can pay every month.
- A month-by-month schedule showing the date each debt is cleared.
The spreadsheet below builds that schedule for both methods so you can compare the debt-free date.
General information, not financial, tax or legal advice. Examples use made-up numbers.
Excel and Google Sheets template
Debt Payoff Planner
List your debts, add what extra you can pay, pick Snowball or Avalanche and see the month you become debt-free.
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