Which method costs less in the worked example on this page?

On the page's illustrative debt set — three fictional debts totalling $4,600, paid at $300 a month — the snowball pays about $490 in total interest and the avalanche about $471, a difference of about $19. Both methods reach debt-free in month 17. The figures are an illustration, not a promise for any real set of debts.

Do I still pay the minimums on my other debts?

Yes. Minimums on all debts continue, whichever method you choose. The extra money goes on the one target debt — the highest APR for the avalanche, or the smallest balance for the snowball.

Debt Avalanche vs Debt Snowball: The Maths, Worked Side by Side

Q: What is the difference between the debt avalanche and the debt snowball?

Both methods pay every minimum on time and put all extra money on one target debt. The avalanche targets the debt with the highest APR first, so it shrinks the most expensive balance first. The snowball targets the smallest balance first, whatever its rate, so a debt disappears sooner. When a debt clears, its whole payment rolls to the next target.

Two orders for the same debts

If you owe money on more than one balance, you have to choose an order to pay them in — even if you never name the choice. The Consumer Financial Protection Bureau (CFPB) describes the two common strategies plainly in its guidance: in CFPB, “Get money smart: 25 tips”, tip 14 says there are two common strategies to pay down debt — the highest interest-rate method and the snowball method — and advises readers to learn the differences and pick the one that works best for them. The CFPB's adult financial education resources also provide a debt worksheet approach: list who you owe, how much, the payment, and the interest rate, before making a plan (CFPB adult financial education tools and resources). This page follows that order: list first, then compare the maths on one shared example.

How each method works, step by step

The debt avalanche: highest rate first

List every debt with its APR Write the balance, annual percentage rate, and minimum payment for each debt.
Pay every minimum on time Minimums on all debts continue, whichever method you choose.
Put all extra money on the highest APR The most expensive debt receives every spare dollar until it is gone.
Roll the freed payment down When that debt clears, its whole payment moves to the next-highest APR.

The debt snowball: smallest balance first

List every debt by balance Ignore the APR for ordering purposes; smallest balance goes first.
Pay every minimum on time Exactly as with the avalanche, no debt is skipped.
Put all extra money on the smallest balance That debt disappears sooner, reducing the number of open debts.
Roll the freed payment up Its payment then moves to the next-smallest balance, so the payment grows as debts clear — the snowball image.

One worked comparison — illustrative debts, real arithmetic

Illustrative example only. The three debts below are fictional, with illustrative balances, APRs and minimum payments. The reader in this example pays $300 a month in total — the $115 combined minimums plus $185 extra — and keeps paying $300 until everything is gone. Interest is calculated monthly at APR ÷ 12 on the remaining balance, minimums are paid on every debt each month, and freed payments roll to the next target. Figures are rounded to the nearest dollar in the summary; the totals come from that month-by-month calculation.

Illustrative debt	Balance	APR	Minimum
Card A	$600	19%	$25
Card B	$1,200	26%	$35
Card C	$2,800	11%	$55
Total	$4,600		$115

Snowball result: order A, then B, then C

Paying smallest first, Card A clears in month 3, Card B in month 9, and Card C in month 17. Total interest paid over the 17 months is about $490. The first debt is gone quickly — after roughly a quarter of a year, this reader has only two debts left to think about.

Avalanche result: order B, then A, then C

Paying highest rate first, Card B clears in month 6, Card A in month 8, and Card C also in month 17. Total interest paid is about $471. The first clearance takes twice as long as the snowball's first clearance, but less money is spent on interest overall.

Method	Payoff order	First debt gone	Debt-free	Total interest (illustrative)
Snowball	A → B → C	Month 3	Month 17	~$490
Avalanche	B → A → C	Month 6	Month 17	~$471

The honest difference in this example is about $19 — $490 minus $471, rounded in the table — and no difference in the debt-free month. That is worth stating plainly: with small balances and a short payoff, the gap between methods can be modest. With larger balances, higher rates, or a longer payoff, the same arithmetic generally produces a larger interest gap, because the highest-rate balance stays large for longer under the snowball order. Neither result above is a promise for any real set of debts; re-run the steps with your own balances, APRs and minimums.

The behavioural trade-off, stated neutrally

The avalanche is the cheaper order on paper whenever the orders differ, because it shrinks the most expensive balance first. The snowball's advantage is not mathematical — it is that a debt disappearing in month 3 rather than month 6 can make a plan feel workable, and a plan that is followed usually beats a cheaper plan that is abandoned. This page does not declare one method right for you. It presents the trade-off the CFPB points readers to weigh: know what you owe first, compare the strategies, and pick the one that works best for your situation. If minimums themselves are not affordable, that is a different problem from ordering — see our guide to emergency fund or pay off debt for how a small buffer fits alongside repayment, paying off credit card debt for the broader steps, and what credit card APR means for how the rate itself is applied.

Official resources

Next steps: Pay off credit card debt · What is credit card APR? · Emergency fund or pay off debt?

This guide is educational information, not financial advice. For advice about your specific situation, consider speaking with a qualified financial professional. See our Disclaimer.