WalletFlow guide
Debt snowball vs avalanche — which actually works?
Both work. One feels better, one saves more. Here's how to pick the right one for you.
5 min read · General information
By WalletFlow
You've got a few debts. You can throw extra money at any of them. Which one first? Two strategies dominate: snowball (smallest balance first) and avalanche (highest interest rate first).
Snowball — fast wins
Pay minimums on everything, then throw all extra at the smallest debt. When it's gone, roll its payment into the next smallest. Each kill feels huge, which is why people stick with it.
Avalanche — cheapest in dollars
Same minimums, but extra goes to the highest-interest debt first. Mathematically optimal. Saves you the most interest. Slower to feel like you're winning.
Which one wins?
The one you'll actually finish. Avalanche typically saves a few hundred to a few thousand dollars. Snowball typically gets people to the finish line because momentum compounds. If you've started and stalled before, use snowball. If you've never started, use avalanche.
The hybrid most people land on
Knock out anything under $1,000 first (instant wins), then switch to avalanche on the bigger balances. Best of both worlds.
Doing this in WalletFlow
Add your debts with balance, rate and minimum. WalletFlow ranks the Best Move based on your spare cashflow, shows your debt-free date, and flags any debt where minimums aren't beating monthly interest.
This guide provides general information only and does not consider your objectives, financial situation or needs.