Snowball vs. Avalanche

Both strategies pay the minimum on every debt and send everything extra to one debt at a time. They differ in which debt gets the extra.

Debt Snowball

Pays off the smallest debts first.

• Quick wins, because small balances disappear sooner.
• That tends to keep people motivated.
• It may cost slightly more interest.

Debt Avalanche

Pays off the debt with the highest interest rate first.

• Saves the most money on interest.
• It’s the mathematically cheapest order.
• Your first payoff may take longer.

Compare them on your numbers

Open the Compare tab. PayoffPilot shows both strategies side by side, with the interest difference and the time difference, and a recommendation.

Sometimes the two come out very close. When they do, the app says so, and the choice comes down to what keeps you going: quick wins or the lowest total interest.

You can switch your preferred strategy any time in your profile. Full comparison detail is part of PayoffPilot Pro.