The short answer: both methods are ways of ordering debt repayments. You keep paying the minimum on every debt, and put any extra towards one debt at a time. The snowball method targets the smallest balance first. The avalanche method targets the highest interest rate first. When one debt is cleared, its payment rolls onto the next.
This article explains how each method works. It doesn't say which one you should use. If you're struggling with debt, free and confidential help is available from StepChange, Citizens Advice or MoneyHelper.
How the debt snowball works
- List your debts from the smallest balance to the largest.
- Pay the minimum on all of them.
- Put any extra money towards the smallest balance.
- When it's cleared, add its payment to the next smallest, and so on.
People often describe the appeal as motivation: clearing a whole debt early can feel like real progress.
How the debt avalanche works
- List your debts from the highest interest rate (APR) to the lowest.
- Pay the minimum on all of them.
- Put any extra money towards the highest-rate debt.
- When it's cleared, move its payment to the next highest rate.
Mathematically, this order usually means less interest is paid overall, although the first debt may take longer to clear.
Side by side: the same debts, two orders
| Debt | Balance | APR | Snowball order | Avalanche order |
|---|---|---|---|---|
| Store card | £650 | 29.9% | 1st | 1st |
| Credit card | £2,400 | 22.9% | 2nd | 2nd |
| Car loan | £6,500 | 6.9% | 3rd | 3rd |
Made-up example. Here the orders happen to match; with different balances and rates they often won't.
Tracking repayments in a spreadsheet
A repayment tracker needs each debt's balance, interest rate and minimum payment, plus the extra amount you plan to pay. A month-by-month schedule then shows how balances fall and when each one is cleared, based on the numbers you enter. It's an estimate: real results change if rates, payments or balances change.
Frequently asked questions
Which method is better?
It depends on the person and their circumstances. For guidance on your own situation, speak to a free debt advice service such as StepChange or Citizens Advice.
Do I still pay the minimum on every debt?
Yes. Both methods assume every minimum payment is made each month.
Track it in a template
Our Debt Snowball Tracker lets you switch between the snowball and avalanche orders and see an estimated month-by-month schedule based on the figures you enter. It's a planning tool, not advice.
Important: This article is general information about how repayment methods work. It is not financial or debt advice and doesn't take your personal circumstances into account. Any figures are made-up examples. For free, impartial guidance, visit MoneyHelper. If you're worried about debt, contact StepChange or Citizens Advice.