Two Proven Strategies
Both the Snowball and Avalanche methods work. The best choice depends on your personality — whether you need quick wins for motivation or prefer mathematical optimisation.
Avalanche — Highest Interest First
Pay minimums on all debts, then throw every extra pound at the highest interest rate debt. Once paid, move to the next highest.
✓ Saves the most money in interest
✓ Mathematically optimal
✓ Fastest total payoff time
✗ May take longer to see first win
Snowball — Smallest Balance First
Pay minimums on all debts, then throw every extra pound at the smallest balance debt. Once paid, move to the next smallest.
✓ Quick psychological wins
✓ Builds momentum and motivation
✓ Reduces number of debts faster
✗ Costs more in total interest
Worked Example
Both strategies, same debt profile, £400/month to pay:
Starting Debts
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Store Card | £500 | 29.9% | £15 |
| Credit Card | £3,000 | 22.9% | £75 |
| Overdraft | £1,500 | 39.9% | £50 |
| Car Loan | £5,000 | 7.9% | £120 |
Total debt: £10,000 | Total minimums: £260/month | Extra to allocate: £140/month
Avalanche Order (by APR)
31 months · £1,850 interest
Snowball Order (by Balance)
33 months · £2,100 interest
Side by Side
Metric
Time to debt-free
Total interest
First win
Avalanche
31 months
£1,850
11 months
Snowball
33 months
£2,100
4 months
Avalanche saves £250 and 2 months — but Snowball gives you a win 7 months sooner.
Which Should You Choose?
Choose Avalanche If:
- → You're motivated by math and logic
- → You can stay committed without quick wins
- → Interest rate differences are significant
- → You want to pay the least amount possible
Choose Snowball If:
- → You need motivation and quick wins
- → You've tried and failed with debt payoff before
- → You have many small debts cluttering your finances
- → The emotional burden of multiple debts is heavy
Hybrid Approach
Some people combine both: knock out one or two tiny debts for momentum, then switch to avalanche for the rest. Quick wins AND interest savings.
The Rollover Effect
When you pay off a debt, you don't reduce your monthly payment — you roll it onto the next debt.
- Pay off Store Card (minimum was £15) → Add £15 to next debt payment
- Pay off Overdraft (minimum was £50) → Add £65 to next debt payment
- Each payoff accelerates the next one
Action Steps
- List all your debts with balances and APRs
- Decide: Are you motivated by math (Avalanche) or momentum (Snowball)?
- Order your debts according to your chosen method
- Calculate your total minimum payments
- Determine how much extra you can pay each month
- Set up payments and start attacking debt #1
"The best method is the one you'll actually stick to. A perfect plan you abandon is worse than a slightly less optimal plan you complete."
Choose based on self-knowledge, not ego
Put It Into Practice
Use our Multi-Card Payoff Calculator to run both strategies with your actual debts and see exactly which approach works best for your situation.
Try Multi-Card Payoff Calculator