Debt Snowball vs Debt Avalanche: Which Saves More Money?

Key Takeaways

• Debt Snowball pays smallest debts first for psychological wins; costs more in interest but builds momentum
• Debt Avalanche pays highest interest debts first; saves the most money mathematically but takes longer for first win
• Using our real example: Avalanche saves $2,847 in interest vs Snowball on $30,000 total debt
• Personal psychology matters more than you think—best strategy is the one you’ll actually stick with
• Hybrid approach: use Avalanche math, but celebrate small wins to stay motivated