I hear this question a lot. You want to get out of debt. You want a plan that you can actually follow.
Both methods work. The right one is the one you will stick to.
Snowball
With Snowball, you list your debts from smallest balance to largest balance. You pay the minimum on every debt. You put every extra dollar on the smallest debt first.
When that debt is gone, you move to the next smallest debt. You keep going until the list is clear.
Let me give you a tiny example. Say you owe 400 on one card, 900 on another card, and 3000 on a loan. With Snowball, you attack the 400 debt first. You get a quick win. That win can keep you going.
Snowball is good if you need momentum. A win early can help you stay with the plan.
Avalanche
With Avalanche, you list your debts from highest interest rate to lowest interest rate. You pay the minimum on every debt. You put every extra dollar on the debt with the highest rate first.
When that debt is gone, you move to the next highest rate. You keep going until the list is clear.
Use the same example. Say the 3000 loan has the highest rate, the 900 card is next, and the 400 card has the lowest rate. With Avalanche, you attack the 3000 loan first, even though it is the largest balance.
Avalanche is good if you want to save the most interest. It can cost you less over time.
So which one should you pick?
Ask yourself one honest question. What will keep you going on a hard month?
If a quick win helps you stay on track, pick Snowball. If saving interest keeps you motivated, pick Avalanche. Neither choice is wrong. A plan you quit does not help you. A plan you follow does.
One more tip. Write down your debts in one place. Note the balance, the rate, and the minimum payment for each one. Then pick your order and stick to it for at least a few months. You can always check the numbers again later.
A planner can help you see both methods next to each other, with real dates for each plan. That can make the choice easier. But you do not need a perfect tool to start. You need a clear order and a first payment.
