Debt Avalanche vs. Debt Snowball: Which Method Helps You Get Out of Debt Faster?

So which one should you choose?

What Is the Debt Avalanche Method?

The Debt Avalanche is all about math and efficiency. Its goal is simple:

Pay the least amount of interest and get out of debt as fast as possible.

How It Works

1. List all your debts from highest interest rate to lowest interest rate.

2. Pay the minimum on every debt except the one with the highest interest.

3. Put all extra money toward that highest-interest debt.

4. Once it’s gone, move to the next highest interest debt.

5. Repeat until debt-free.

Why It Works

• Saves the most money in interest.

• Usually gets you out of debt faster than other methods.

• Great for people motivated by financial efficiency and logic.

Potential Drawbacks

• It may take longer to see your first big win, especially if your highest-interest debt also has a large balance.

• Some people lose motivation without small, early victories.

What Is the Debt Snowball Method?

The Debt Snowball focuses on momentum and psychology. Instead of interest rates, it prioritizes quick emotional wins.

How It Works

1. List your debts from smallest balance to largest balance.

2. Pay all minimums except on the smallest debt.

3. Pour all extra money into paying off the smallest debt first.

4. Roll that payment into the next-smallest debt.

5. Continue until you’re debt-free.

Why It Works

• Creates quick wins that boost motivation.

• Builds positive financial habits that reinforce consistency.

• Easy to understand and stick with long-term.

Potential Drawbacks

• You may pay more interest overall compared to the avalanche method.

• In some cases, it can take longer to become debt-free.

Avalanche vs. Snowball: Side-by-Side Comparison

Which Method Should You Choose?

Choose the Debt Avalanche if…

• You want to save the most money.

• You’re comfortable staying motivated without early wins.

• You like efficient, numbers-based plans.

Choose the Debt Snowball if…

• You need motivation to stay consistent.

• You enjoy checking off smaller debts quickly.

• You’ve had trouble sticking to long-term financial plans before.

Or choose a hybrid!

Many people start with the Snowball to build confidence, then switch to the Avalanche after knocking out their small balances.

How StackIt Helps You Succeed With Either Method

No matter which debt payoff method you choose, staying organized is half the battle. That’s where StackIt, a financial organization app, becomes a powerful companion.

1. Organize Your Finances Into Individual Accounts (Stacks)

StackIt lets you create multiple “stacks” (individual accounts) for different financial goals.

You can create stacks for:

• Each debt you’re paying off

• Emergency savings

• Monthly expenses

• Long-term goals

This makes it incredibly easy to manage your snowball or avalanche payments without confusion.

2. Track Your Progress With Clarity

Seeing your balances drop—whether the smallest first or the highest-interest first—keeps you motivated. StackIt’s structure helps you visualize how far you’ve come and what’s next.

3. Credit Monitoring and Reporting

Because paying off debt directly impacts your credit, StackIt provides:

• Credit score monitoring

• Credit reporting insights

This helps you see the real-world impact of your payoff strategy as your credit health improves.

4. Multi-Person Accounts

Debt repayment often involves partners, family members, or accountability buddies.

StackIt allows multiple people in a single account, making it easy to:

• Coordinate payoff strategies

• Share financial responsibilities

• Stay aligned on goals

This is especially valuable for couples working together to pay off shared debt.