The Great Debt Debate: Avalanche vs. Snowball

If you're staring at a pile of bills and feeling like you need a helmet, you're not alone. Debt can feel overwhelming, but tackling it is all about having a plan. The two most popular game plans are the "Debt Avalanche" and the "Debt Snowball." They both work, but they use very different strategies. One is all about math, and the other is all about motivation. Let's dig in and see which method fits your style.

The "Logic vs. Emotion" Showdown

Both methods start the same way: List all your debts. Make the minimum payment on everything to stay current. The difference lies in where you invest your extra money.

The Debt Avalanche (The "Math" Method)

How it works: You attack your debt with the highest interest rate first, regardless of the balance.

The Pro: This is the cheapest and fastest way to get out of debt. You'll pay significantly less in total interest because you're wiping out the most expensive debt first.

The Con: It might take a while to pay off that first big, high-interest loan, which can be discouraging. This method requires patience.

The Debt Snowball (The "Motivation" Method)

How it works: You attack your debt with the smallest balance first, regardless of the interest rate.

The Pro: You get quick, satisfying wins. Paying off a small card or loan feels fantastic and builds momentum to keep you going. As you pay one off, you "roll" that payment into the next smallest balance, making your payment "snowball" get bigger and bigger.

The Con: Because you're letting those high-interest debts sit (while paying the minimum), you will pay more money in interest over the long haul.

So, Which One is Better?

Here’s the straightforward answer: The best debt repayment plan is the one you will actually stick with.

If you're a "run-the-numbers" person who stays motivated by a spreadsheet, the Avalanche will save you the most money. If you need those "Heck yes, I did it!" moments to stay in the fight, the Snowball is your champion.
Either way, you're taking control. And if you feel stuck or just want to talk through your options with a friendly (and local!) human, that's what we're here for. Stop by any Common Trust FCU branch or give us a call. We're always happy to help our members build a solid financial future.