Debt Avalanche vs Debt Snowball: Which Debt Payoff Strategy Is Best?

Compare Debt Avalanche (highest interest rate APR first) vs Debt Snowball (lowest balance first) to eliminate debt fast.

By Sarah Jenkins, CFA

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Reviewed by David Vance, CFP

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5 min read

Debt Avalanche vs Debt Snowball Comparison

Both strategies require making minimum payments on all debts while applying extra monthly cash toward a single target debt. The difference lies in how target debts are prioritized:

Debt Avalanche (Mathematically Optimal): Focuses extra payments on the debt with the highest interest rate (APR). Saves the most money in interest and achieves the fastest overall debt freedom.
Debt Snowball (Psychologically Motivating): Focuses extra payments on the debt with the lowest total dollar balance. Delivers quick psychological wins by eliminating small accounts early.