If you have more than one debt, the biggest question isn't whether to pay them off — it's in what order. The two best-known answers are the snowball and the avalanche. Both work. They just optimise for different things.

The debt snowball: smallest balance first

With the snowball method you list your debts from smallest balance to largest, pay the minimum on everything, and throw every spare pound at the smallest debt until it's gone. Then you roll that freed-up payment into the next smallest, and so on — the payment "snowballs" as each debt disappears.

Why people love it: quick wins. Clearing a whole debt in the first couple of months is a real psychological boost, and each closed account simplifies your finances.

The trade-off: if your smallest debts also happen to have low interest rates, you'll pay more interest overall than you would with the avalanche.

The debt avalanche: highest interest rate first

With the avalanche you order debts by interest rate, highest first. Minimums on everything, spare money at the most expensive debt. Mathematically, this is the cheapest possible order — every pound goes where it cancels the most interest.

Why people love it: it's optimal. Over a long payoff journey, the savings can be significant, especially if you're carrying high-APR credit card debt alongside cheaper loans.

The trade-off: if your highest-rate debt is also your largest, it can take a long time before you close your first account. Some people lose steam without visible wins.

What the research says

Studies of real repayment behaviour have repeatedly found something interesting: people who focus on clearing individual accounts — snowball-style — are often more likely to finish than people who spread effort optimally. The "best" method on paper is worth nothing if you abandon it in month four.

So the honest answer is:

  • Choose the avalanche if you're motivated by numbers and confident you'll stay consistent.
  • Choose the snowball if you know you need momentum and visible progress to keep going.
  • Or mix them — many people snowball their first one or two small debts for the quick win, then switch to avalanche for the rest.

Whichever you choose, consistency beats optimisation

The difference in total interest between the two methods is usually smaller than the difference between finishing and giving up. Pick the order you'll stick with, automate what you can, and track your progress somewhere you'll actually look at it.

That last part is exactly why we built DebtBoss — it turns your payoff plan into something you want to check: every payment damages your debt monster, and both snowball and avalanche orders (or your own custom order) are supported neutrally, so you can see how each plays out with your real numbers before you commit.