Financial article
Short answer: The avalanche method (highest interest first) saves more money — typically $500–$3,000+ on $20,000 of debt. The snowball method (smallest balance first) keeps more people motivated to actually finish. Research from a Kellogg/Northwestern study found snowball users were significantly more likely to eliminate their debt entirely, even though avalanche is mathematically cheaper. Here's a real side-by-side on the same $16,000 of debt, so you can pick the method that matches both your money and your psychology. Snowball vs Avalanche: $16,000 Debt Example Same three debts, same $600/month total payment ($300 minimums + $300 extra): Strategy First debt killed Total time Total interest paid Snowball (smallest first) ~8 months ($3k store card) 36 months ~$3,892 Avalanche (highest APR first) ~17 months ($5k credit card) 35 months ~$2,045 Debts: $5,000 credit card @ 22%, $3,000 store
On $16,000 of debt, the avalanche saves about $1,847 in interest — but most people quit it. See a real side-by-side breakdown and pick the method that fits your personality.
Canonical URL: https://snapmoneyhub.com/articles/snowball-vs-avalanche