The two most popular debt payoff strategies are snowball and avalanche. Both work — the difference is motivation vs mathematics.
Snowball: smallest balance first
You focus on clearing the smallest balance first (while paying minimums on the rest), then move to the next. The advantage: early wins that build motivation.
Avalanche: highest interest first
You focus on the highest interest rate debt first. The advantage: saves the most interest mathematically.
| Snowball | Avalanche | |
|---|---|---|
| Prioritise | Smallest balance | Highest interest |
| Advantage | Motivation & momentum | Interest savings |
| Best for | Those who need a push | Those disciplined with numbers |
Note: This is general financial education, not legal advice or specific credit counselling. For serious or distressed debt, seek accredited help such as AKPK (free).
Nazim's advice
The best strategy is the one you'll actually stick with to the end. Avalanche wins on paper, but if snowball keeps you motivated and stops you giving up — that's worth more. Pick the one that fits your personality.
Frequently Asked Questions
Snowball or avalanche — which is better?
Avalanche saves more interest mathematically; snowball gives faster motivation. The best is the one you can follow consistently.
Can I combine both methods?
Yes. Some start with snowball for momentum, then switch to avalanche. Flexibility is fine.
Should I pay more than the minimum?
Yes — paying only the minimum lengthens the term & adds interest. Any extra speeds up your freedom from debt.