Debt snowball or avalanche? Decision sheet
List your debts in both orders and pick the method that fits you.
There are two popular ways to pay off several debts. The snowball pays the smallest balance first, for quick wins. The avalanche pays the highest interest rate first, which usually costs less overall.
Neither is wrong. This worksheet lists your debts in both orders side by side and asks a few questions to help you choose the one you will actually stick with.
How it works
List your debts with their balances, interest rates and minimum payments. Then write them in two orders: snowball (smallest balance first) and avalanche (highest interest rate first). If the orders are almost the same, just start. If they are different, the questions at the bottom help you choose.
How to use it
- List every debt with its balance, interest rate and minimum payment.
- Write them in snowball order (smallest balance first) and avalanche order (highest rate first).
- Answer the questions at the bottom and circle your method.
Ways to use it
- Hybrid: clear one small debt for a quick win, then switch to avalanche.
- Revisit the choice if a rate changes or a new debt appears.
- Track progress with the snowball or credit card tracker.
Tips
- If the two orders come out almost the same, the choice barely matters. Just start.
- Whichever you pick, pay the minimum on everything and put every extra dollar on the first debt in your order.
Questions
What is the difference between the debt snowball and avalanche?
The snowball pays the smallest balance first for quick wins. The avalanche pays the highest interest rate first, which usually costs less in total.
Which is better, snowball or avalanche?
The avalanche usually saves more interest; the snowball often keeps people motivated. The better method is the one you will stick with.
Do I still pay the minimum on other debts?
Yes. With either method, pay the minimum on every debt and put extra money on the first one in your order.
Goes well with
- Debt snowball tracker for couples Yours, mine and shared debts on one page, in snowball order.
- Credit card payoff tracker A color-in thermometer for each of up to six cards.
More debt payoff
This printable is a general planning tool, not financial advice. Read the full disclaimer.