Two proven methods. One is right for your situation.
The mathematically optimal method is not always the one you will actually follow. The right strategy is the one that matches both your numbers and your psychology.
The Situation
The snowball method pays the smallest balance first. The avalanche method pays the highest interest rate first. The avalanche saves more money. The snowball builds more momentum. Neither is universally correct — the right choice depends on your specific debt profile and your track record with financial commitments.
"The best debt payoff strategy is the one you will actually execute for 24 months without abandoning."
Worthune Editorial
The Payoff Framework · Steps 1 & 2
For each debt, record: balance, interest rate, minimum payment, and lender. Sort the list twice — once by balance (smallest first) and once by interest rate (highest first). These are your two payoff sequences.
Build both listsUse a debt payoff calculator to compare total interest paid under each method. The difference is the financial cost of choosing snowball over avalanche. This number helps you make an informed trade-off.
Calculate the gapThe Payoff Framework · Steps 3 & 4
If you have abandoned a debt payoff plan before, choose snowball — the early wins are not psychological tricks, they are evidence-based momentum builders. If you have a strong track record of following through, avalanche is the better financial choice.
Know your profileBoth methods require paying more than the minimum on the target debt. Decide on a fixed extra payment amount — even a small monthly addition makes a meaningful difference. Automate it so the decision is made once.
Set the extra paymentThe Payoff Framework · Steps 5 & 6
When a debt is paid off, roll its full payment amount to the next target. Do not absorb the freed cash into spending. This compounding of payments is what makes both methods accelerate over time.
Roll every paymentA payoff plan is undermined by new debt accumulation. Identify the behaviour that created the debt and address it structurally — not through willpower. Freeze cards, reduce credit limits, or remove stored payment methods.
Close the tapAfter the Work
Which method fits your situation?
You follow through. The avalanche method maximises your savings. Automate and execute.
Early wins matter for you. The snowball method builds the consistency that the avalanche requires.
One very high-rate debt alongside several small ones may warrant a hybrid approach — clear the small debts first, then avalanche the remainder.
The method that saves the most money is the one you execute consistently — not the one that is mathematically optimal.
Next Step
Use Worthune's debt payoff planner to compare both methods against your specific debt profile and build your automated payment sequence.
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