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Snowball vs Avalanche: Which Debt Method is Better?

There are two main ways to pay off debt: the snowball method and the avalanche method. Both work. But one might be better for you depending on your personality. Let us explain both.

Key Takeaways

  • Snowball = pay smallest debt first (best for motivation)
  • Avalanche = pay highest interest first (saves the most money)
  • Both methods work — the best one is the one you stick to
  • The difference in money saved is often small
  • Motivation matters more than maths for most people

The Snowball Method

With the snowball method, you line up your debts from smallest to largest. You pay off the smallest one first, then move to the next. You get quick wins early on, which keeps you going.

  • Pay minimum on everything
  • Put all extra money on the SMALLEST debt
  • When it is gone, move to the next smallest
  • Best for: People who need motivation and quick wins
  • Downside: You might pay a bit more interest overall

The Avalanche Method

With the avalanche method, you line up your debts from highest interest rate to lowest. You attack the most expensive debt first. This saves you the most money in interest over time.

  • Pay minimum on everything
  • Put all extra money on the HIGHEST INTEREST debt
  • When it is gone, move to the next highest interest
  • Best for: People who are disciplined and patient
  • Downside: It can take longer to see your first debt disappear

Which one saves more money?

The avalanche method always saves more money in interest. But the difference is often smaller than you think. If the snowball method keeps you motivated and you stick with it, you will pay off your debt faster than if you start the avalanche method and give up after 3 months.

  • Avalanche saves more in interest (always)
  • But the difference is often only a few hundred Rand
  • The method you STICK TO is the best method
  • Use our calculator to see the exact difference for your debts

A real South African example

Let us say you have 3 debts: a Woolworths card (R3,000 at 20%), a personal loan (R15,000 at 28%), and a car (R80,000 at 11%). With the snowball method, you pay off Woolworths first (quick win in 2-3 months). With avalanche, you attack the personal loan first (saves more interest but takes longer to feel progress).

  • Snowball: Woolworths gone in 2 months — feels great!
  • Avalanche: Personal loan takes 8 months — but saves R1,200 in interest
  • Both get you debt-free — just in a different order

Ready to see your own numbers?

Use the Debt Snowball Planner