Snowball, avalanche, or Small Wins: which order should I pay off debt in?
The three methods in one table
| Method | Order | Wins on | Loses on |
|---|---|---|---|
| Snowball | Smallest balance first | Motivation, quick zeros, simplicity | Can pay more interest if a big high-APR balance waits |
| Avalanche | Highest interest rate first | Least total interest on paper | Your first zero can take a year or more, and most people quit before it |
| Small Wins (my method) | Smallest first for small debts, and 0% transfers for the big high-interest ones | Quick zeros and the interest stops at the same time | Needs a good enough credit score for transfer cards, and calendar discipline |
Why the first zero matters more than the math
Every month you pay the minimum on every debt except the smallest. Every extra dollar attacks that one. When it hits zero, that whole payment rolls onto the next smallest. Paying off a debt completely, even a $400 store card, does something to you that a spreadsheet cannot. It makes the plan real. My first payoff was my smallest student loan, about $1,000, and I paid it off in one night. Everything after that felt possible.
Where avalanche is right
Avalanche is right about one thing: interest is the enemy. A $5,000 balance at 24% costs about $100 a month in interest before you touch the principal. But you do not have to pay that balance down slowly to fix it. You move it to a 0% card, and now the avalanche problem is gone while the snowball keeps rolling. That is the whole trick.
How to sort your own list
- List every debt: name, balance, rate, minimum.
- Anything under about $1,500, or under 10% interest: Small Wins lane. Smallest first.
- Anything large at 15% or more: rotation lane. Move it to 0%, keep paying it down at zero interest.
- Low-interest loans (under 10%, like many student loans and car loans) go last. Minimums only until the cards are gone.
A worked example
| Debt | Balance | Rate | Lane |
|---|---|---|---|
| Store card | $400 | 22% | Small Wins, first |
| Medical bill | $800 | 0% | Small Wins, second |
| Capital One | $2,100 | 26% | Rotation, transfer to 0% |
| Chase Visa | $6,400 | 24% | Rotation, transfer to 0% |
| Student loan | $18,000 | 6% | Minimums until the cards are gone |
Questions people ask
Is the snowball or avalanche method better?
Avalanche saves the most interest on paper; snowball gets you a first zero fast, which is why more people finish it. The Small Wins method combines them: snowball the small debts and move the big high-interest balances to 0% cards.
What is the Small Wins method?
Pay minimums on everything except your smallest balance, throw every extra dollar at that one, roll the payment forward when it is gone, and in parallel move large high-interest balances to 0% balance transfer cards.
Should student loans be paid off first?
Usually last if the rate is low. Mine were under 10%, so they got minimums until every credit card was gone. The exception was my smallest one, which I paid first for the quick win.
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