Debt avalanche
The avalanche targets the debt with the highest interest rate first. If everything else is equal, this is normally the mathematically efficient method because it attacks the most expensive debt.
Debt snowball
The snowball targets the smallest balance first. It can create faster visible wins, which some borrowers find easier to stick with.
The strategy you follow matters
A mathematically optimal plan that you abandon can perform worse than a slightly less efficient plan you consistently follow. The right choice can therefore include behavioural factors as well as interest cost.
Keep the payment budget constant
When a debt is paid off, roll its old minimum payment into the next target rather than allowing the total debt-payment budget to shrink.
Put the numbers into context.
Compare both strategies with your debts →
Compare both strategies with your debts →
Primary sources
MoneyPilot review date: August 20, 2026