The two strategies in one minute
Both methods have you pay minimums on everything and throw every spare dollar at one target debt. They differ only in the target: avalanche attacks the highest interest rate first, which is mathematically optimal; snowball attacks the smallest balance first, which produces quick wins that keep people motivated. The best strategy on paper is worthless if you abandon it in month three — which is the honest case for snowball.
How big is the difference, really?
Usually smaller than the internet argues about. With the example debts ($6,000 at 22%, $3,000 at 12%, $1,200 at 7%) and $400 a month, avalanche saves roughly a few hundred dollars and finishes about the same time as snowball. The gap grows when rate differences are extreme or balances are large; it shrinks toward zero when rates are similar. Run your own numbers — that is what the calculator is for.
Practical playbook
- List every debt with balance, rate and minimum payment. Visibility alone changes behavior.
- Automate minimums so a missed payment never adds fees to the pile.
- Pick a method and stay put. Switching strategies mid-way costs more than either choice.
- Consider a 0% balance transfer or consolidation loan if your credit allows — lowering the rate beats optimizing the order of expensive debts.