If you're juggling more than one debt, whether that's a credit card, an overdraft, a store card, or a loan, you've probably wondered whether there's a "best" way to pay it all off. The good news is that there are two well-known, tried-and-tested strategies that people across the UK use to get out of debt: the snowball method and the avalanche method.
Both work. Both can genuinely help you become debt-free. But they work in quite different ways, and which one suits you best often comes down to your personality as much as your maths. Let's break them both down so you can decide which approach might work for you.
Before we dive in, a quick note: this post is general information to help you understand your options, not personalised financial advice. If your debts feel overwhelming or unmanageable, please consider speaking to a free service like MoneyHelper or Citizens Advice, who can talk through your specific situation with you.
What Are the Snowball and Avalanche Methods?
Both methods start the same way: you list every debt you have, along with the balance, interest rate, and minimum monthly payment. From there, you carry on paying the minimum on all your debts, but you put any extra money you can find towards one debt at a time, in a specific order.
The difference is which debt you tackle first.
The Debt Snowball Method
With the snowball method, you order your debts from smallest balance to largest, regardless of interest rate. You throw every spare pound at the smallest debt while paying minimums on everything else. Once that smallest debt is cleared, you take the money you were putting towards it (plus its old minimum payment) and roll it onto the next smallest debt. And so on, like a snowball rolling downhill, picking up size and speed as it goes.
Example:
- Store card: £300
- Credit card: £1,200
- Personal loan: £4,500
You'd focus all your extra money on the £300 store card first, even if it has a lower interest rate than the credit card.
The Debt Avalanche Method
With the avalanche method, you order your debts from highest interest rate to lowest, regardless of the balance. You put your extra money towards whichever debt is costing you the most in interest, while paying minimums on the rest. Once that's cleared, you move to the next highest interest rate debt.
Example (using the same debts, but now with interest rates):
- Credit card: £1,200 at 24.9% APR
- Personal loan: £4,500 at 9.9% APR
- Store card: £300 at 19.9% APR
Here, you'd tackle the credit card first, because it has the highest interest rate, even though it isn't the smallest balance.
The Maths: Why Avalanche Usually Wins on Paper
If you're purely looking at pounds and pence, the avalanche method will almost always save you more money over time. That's because you're attacking the debt that's charging you the most interest first, which means less of your money disappears into interest charges overall, and you become debt-free slightly faster.
If you enjoy a bit of number-crunching, this is a good reason to lean towards avalanche. It's the more "mathematically efficient" route.
The Psychology: Why Snowball Often Wins in Practice
Here's the thing, though: paying off debt isn't just a maths problem. It's an emotional one too. Debt can feel heavy, stressful, and sometimes downright demoralising, especially if you've got several accounts and it feels like you're not making a dent in any of them.
This is where the snowball method has a real advantage. By clearing your smallest debt first, you get a quick win. That debt disappears from your list entirely, often within just a few months. That sense of progress, of actually finishing something, can be a huge motivator to keep going.
For a lot of people, staying motivated matters more than saving an extra few pounds in interest. If you've tried to pay off debt before and lost steam partway through, the small, regular wins of the snowball method might be exactly what keeps you on track this time.
Comparing the Two Methods Side by Side
Debt Snowball
Best for you if:
- You're motivated by visible progress and quick wins
- You've struggled to stick with debt repayment plans before
- You have several smaller debts alongside one or two larger ones
- You want the simplest possible approach to follow
Potential downside: You may pay slightly more in interest overall compared to the avalanche method, especially if your smallest debt has a low interest rate and a larger debt is racking up high interest in the meantime.
Debt Avalanche
Best for you if:
- You're comfortable with numbers and enjoy a bit of financial planning
- You're disciplined and don't need frequent "wins" to stay motivated
- One of your debts has a particularly high interest rate (like many credit cards do)
- Your goal is to minimise the total cost of your debt
Potential downside: If your highest-interest debt also happens to be your largest balance, it might take a while before you see it cleared, which can feel discouraging if you're someone who needs regular progress markers.
How to Choose the Right Method for You
There's no rule that says you have to pick one and stick to it forever. Here are a few questions to help you decide where to start:
Ask yourself: What's kept me stuck in the past?
If lack of motivation has been your biggest obstacle, snowball's quick wins might serve you better. If you've simply never sat down and worked out a proper plan before, avalanche could help you feel more in control and see exactly how much you're saving.
Look at your interest rates
If all your debts have fairly similar interest rates, the difference between the two methods will be small, and you might as well choose whichever keeps you more motivated (usually snowball). But if one debt has a noticeably higher rate (think store cards or certain credit cards, which can carry high APRs), tackling that first with the avalanche method could genuinely save you a meaningful amount.
Consider a hybrid approach
Some people use a blend: they knock out one or two very small debts first for a quick confidence boost, then switch to attacking the highest interest rate debt for the rest of the journey. There's no official name for this, but it's a perfectly sensible way to get the best of both worlds.
Practical Steps to Get Started, Whichever Method You Choose
- List every debt you have. Include the lender, balance, interest rate, and minimum payment. This alone can feel like a relief, as uncertainty is often more stressful than the reality.
- Check your minimum payments are covered. Missing minimum payments can lead to fees and damage your credit file, so this always comes first, whichever method you use.
- Work out how much extra you can realistically put towards debt each month. This is where a solid budget comes in. If you haven't got one already, it's worth reading our guide on building a simple household budget so you know exactly what's spare each month.
- Order your debts using either the snowball or avalanche approach.
- Automate what you can. Setting up standing orders for your minimum payments and your extra "attack" payment means you're less likely to miss anything or spend the money elsewhere.
- Celebrate small wins, whichever method you pick. Paying off any debt, big or small, is worth acknowledging.
A Note on Interest Rates and Credit Files
Whichever method you choose, it's worth understanding your interest rates properly, sometimes referred to as APR (Annual Percentage Rate), as this affects how much a debt is really costing you each year. If you're unsure how to read this on your statements, your lender's customer service team or a free debt charity can help explain it in plain terms.
It's also worth checking your credit report from time to time as you pay off debts, since your progress should be reflected there over time.
When to Seek Extra Support
If your debts feel unmanageable, if you're only able to make minimum payments (or not even that), or if you're using credit to cover essential costs like food or bills, please don't try to navigate this alone. Free, confidential, and non-judgemental help is available through MoneyHelper and Citizens Advice, and speaking to them doesn't cost anything or affect your credit file.
Final Thoughts
Both the snowball and avalanche methods can get you to the same destination: a debt-free future. The "better" one isn't about which is mathematically superior, it's about which one you'll actually stick with. If quick wins keep you going, snowball might be your best friend. If you're driven by minimising costs and don't need constant encouragement, avalanche could suit you well.
Whichever path you choose, the most important step is simply starting, and starting with a clear picture of where you stand. Once you've got your debts listed and your budget in place, you're already well on your way. And if you'd like some help building that budget or thinking about your wider savings goals alongside your debt repayment, our other Genwel guides on budgeting and saving are a great place to continue your journey.
