Debt Snowball vs Avalanche: What the Math Says

There are two common orders for repaying multiple debts: smallest balance first (snowball) or highest interest rate first (avalanche).

The arithmetic

Avalanche always wins on total interest, because money goes where the rate is highest. On typical consumer balances the difference is often modest — tens of dollars a month, not hundreds.

The behaviour

Snowball closes accounts sooner, which is visible progress. People who need momentum finish more often with snowball, and a finished plan beats a theoretically optimal one that gets abandoned.

A hybrid that works

Clear one tiny balance first for the win, then switch to strict rate order for everything else.

What matters more than the order

The payment amount and whether new balances keep appearing. Neither method helps if the cards keep getting used.