Here’s something wild – the average American household carries around $103,000 in debt according to recent data. That number used to freak me out because I was definitely contributing to that statistic! When I first started trying to tackle my own mess of credit cards, student loans, and that car payment I probably shouldn’t have agreed to, I kept hearing about these two methods: the debt avalanche and the debt snowball.

And honestly? I had no clue which one to pick. So I did what any confused person would do – I tried them both at different times in my life, made some embarrassing mistakes along the way, and learned what actually works in the real world versus what looks good on a spreadsheet.

What Is the Debt Snowball Method?

The debt snowball is pretty straightforward, which is probably why it’s so popular. You list all your debts from smallest to largest, completely ignoring the interest rates. Then you attack that smallest debt first while making minimum payments on everything else.

I remember when my financial advisor friend explained this to me over coffee, and I thought she was nuts. “Why wouldn’t I pay off the high-interest stuff first?” I asked her. She just smiled and said “trust the process.”

The whole idea behind the snowball method is psychological wins. When you knock out that first small debt – maybe it’s a $300 medical bill or a $800 credit card – you get this rush of accomplishment that keeps you motivated.

My Snowball Experience (The Good Parts)

Back in 2019, I had five different debts totaling about $28,000. My smallest was a $450 store credit card I’d opened to buy a new laptop (young and dumb, right?). Using the snowball method, I paid that sucker off in two months by throwing an extra $150 at it each month.

The feeling was incredible! It sounds dramatic, but seeing that balance hit zero actually made me tear up a little. That momentum carried me through paying off my next debt, which was around $1,200.

The snowball method really shines when you need motivation. If you’re the type of person who gets discouraged easily – and let’s be honest, most of us are when it comes to debt – those quick wins can be absolutely crucial for sticking with your plan.

What Is the Debt Avalanche Method?

Now the avalanche method is the mathematically “smarter” approach. You organize your debts by interest rate, from highest to lowest, and attack the one with the highest rate first while making minimum payments on the others.

This method saves you the most money in interest over time, which is why financial experts love recommending it. The math doesn’t lie – paying off high-interest debt first means less money going to creditors in the long run.

When I Switched to the Avalanche

After knocking out two small debts with the snowball, I got cocky and thought “okay, time to be smart about this.” I had three debts left: a car loan at 4.5%, a student loan at 5.2%, and a credit card at 18.9%.

Following the avalanche method, I started hammering away at that credit card. The balance was around $8,500, which felt enormous compared to the small victories I’d been getting. Month after month, I’d pay an extra $300-400 toward it, but the balance seemed to barely budge because of that insane interest rate.

It was frustrating as hell, honestly. Some months I wanted to quit because I wasn’t seeing the dramatic progress I’d gotten used to with the snowball approach.

The Real Difference (And What Nobody Tells You)

Here’s what I wish someone had told me from the start: the difference in interest paid between these two methods usually isn’t as massive as you’d think, especially if you’re aggressive about paying down debt either way.

According to research from the Harvard Business Review, people using the snowball method are more likely to actually eliminate all their debts. Why? Because behavior matters more than math when you’re dealing with personal finance.

The avalanche might save you a few hundred dollars in interest (sometimes more, depending on your debt situation), but that doesn’t mean anything if you get discouraged and give up halfway through.

Which One Should You Actually Use?

I’m gonna be straight with you – it depends on your personality. I know that’s not the definitive answer you wanted, but it’s the truth.

Choose the snowball if you:

• Need quick wins to stay motivated
• Have struggled to stick with financial goals in the past
• Have several small debts you could knock out quickly
• Value emotional momentum over mathematical optimization

Choose the avalanche if you:

• Are extremely disciplined and patient
• Have high-interest debt that’s costing you serious money
• Can stay motivated by tracking interest savings
• Don’t need immediate gratification to stick with a plan

My Hybrid Approach (That Actually Worked)

After trying both methods separately, I eventually created my own hybrid system that played to my strengths. I used the snowball to knock out my two smallest debts super fast, then switched to the avalanche for the remaining high-interest accounts.

This gave me those early psychological wins I needed while also being smart about minimizing interest payments on the larger debts. Was it perfect? Nope. But it worked for me because it matched how my brain actually operates.

The Method You’ll Actually Stick With Wins Every Time

Look, I’ve spent way too many hours obsessing over spreadsheets and debt calculators trying to optimize every dollar. But here’s what I’ve learned: the “best” debt payoff method is the one you’ll actually follow through on.

Both the avalanche and snowball methods work – they’re just designed for different types of people. The worst thing you can do is pick one, get discouraged, and then do nothing at all.

Start with whichever method feels right to you, and don’t be afraid to adjust as you go. I changed my approach partway through, and that’s completely fine! The important thing is that you’re taking action and moving forward.

If you found this helpful and want to dive deeper into managing your money without all the boring finance-speak, head over to Money Mythos where we break down other personal finance topics in ways that actually make sense for real people living real lives. Trust me, there’s plenty more where this came from!