Goal
A debt payoff plan you can actually finish
Avalanche saves the most interest, snowball produces the most momentum, and the best plan is the one you do not abandon in month three. What both methods need is a dated overpayment your cash flow can genuinely support.
- Avalanche
Overpay the highest interest rate first. Mathematically optimal, slower to feel like progress.
- Snowball
Clear the smallest balance first. Costs a little more, but the first cleared debt is a powerful signal.
- Buffer first
A one-week buffer stops the next surprise going straight back on the card.
- Dated overpayments
A payment placed on the calendar is protected; an intention is not.
Setting it up
- List every debt: balance, interest rate, minimum payment, due date.
- Build a small buffer — one week of essential costs — before overpaying anything.
- Choose avalanche if the rate spread is wide, snowball if you need momentum.
- Set every minimum as a recurring outflow on its due date.
- Add a single dated overpayment to the target debt each month.
- When one debt clears, roll its whole payment into the next target.
Which method costs what
| Avalanche | Snowball | |
|---|---|---|
| Order | Highest interest rate first | Smallest balance first |
| Total interest | Lowest | Slightly higher |
| First win | Can take months | Often within weeks |
| Best for | Wide rate spread, high discipline | Many small balances, needs motivation |
Keeping the plan alive
Check the projected balance on the day before each payday. If the overpayment pushes it near zero, reduce the overpayment rather than skipping it — consistency beats size.
Revisit the plan whenever a debt clears or income changes. Rolling the freed payment forward is what makes the last debts fall fast.
Frequently asked questions
Is the avalanche or snowball method better?
Avalanche costs less interest; snowball is easier to stick with. Choose snowball if you have abandoned a plan before, avalanche if your rate spread is wide.
Should I save or pay off debt first?
Build one week to one month of buffer first, then attack high-interest debt, then finish the emergency fund.
How much should I overpay each month?
The largest amount your projected balance still clears comfortably the day before payday, and no more.
What happens when a debt is cleared?
Roll its entire payment — minimum plus overpayment — onto the next target. That rollover is what accelerates the plan.
Put every payment on a date
Recurring minimums and dated overpayments, free forever.