The Debt Avalanche vs. Snowball Method: Which is Better?
If you have multiple debts, you've probably heard of two strategies: the debt avalanche (pay highest interest first) and the debt snowball (pay smallest balance first). But which one actually saves you more money?
The Numbers Don't Lie
I ran the numbers on a typical debt portfolio:
- $5,400 credit card @ 22.99%
- $12,000 student loan @ 4.5%
- $8,200 car payment @ 6.9%
- $1,200 medical bill @ 0%
- $3,500 personal loan @ 15.8%
Total: $30,300 in debt
With $800/month total payments:
- Snowball method: Debt-free in 34 months, $3,847 paid in interest
- Avalanche method: Debt-free in 32 months, $3,211 paid in interest
The avalanche method saves $636 and gets you debt-free 2 months sooner. But the snowball method gives you psychological wins faster (paying off that medical bill in month 1).
Why You Need a Spreadsheet
Manual tracking leads to mistakes. I built a Debt Payoff Planner & Tracker in Google Sheets that automatically:
- Ranks your debts by both methods
- Calculates payoff dates
- Tracks progress with visual dashboards
- Shows interest savings
Get the Free Template
I created a complete template available on Gumroad. It includes 6 pre-built tabs with all formulas included. Enter your debts once and see both strategies side by side.
👉 Download the Debt Payoff Planner here
No email required. Instant access. Works on mobile and desktop.
This is a genuine tool I use myself. I'm a retail investor who needed a clear path out of debt.
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