You’ve started along the path to financial independence by deciding to deal with your debt. Even though it’s not always simple, there is hope! Debt snowball and avalanche methods are two straightforward ways to pay off debt and regain control of your money.

However, your best strategy will mostly depend on your situation and personality. Here is our guide on all you need to know about the debt snowball vs. debt avalanche strategies to decide which strategy you want to utilize. 

Let’s get started!

Debt Snowball

Simply put, the "snowball strategy" entails paying down the smallest of all your loans as soon as possible. After paying the debt in full, you transfer the funds you were using to make that payment to the subsequent smallest debt. In a perfect world, this process would go on until you settle all accounts. The amount "snowballs" and increases steadily as you move from the balance with the lowest interest rate to the one with the highest, speeding up the rate at which you pay off the debt.

Debt Avalanche

The "avalanche strategy," in contrast, emphasizes paying the debt with the highest interest rate first. After paying off the loan with the higher interest rate, you move to the account with the next highest interest rate until you pay off everything. Since this technique tackles high-interest rates first, you should ultimately spend less over time by concentrating on the most expensive debts to service.

Debt Avalanche or Debt Snowball?

Your personality will determine which tactic you should use. Think for a moment about what inspires you to maintain a habit.

Best for Motivation and Peace of Mind: The Snowball Approach

The debt snowball approach can be more motivating for you if you enjoy immediate victories and a sense of early, measurable accomplishment. If we can use instant gratification as a powerful instrument for good, we can convince ourselves to maintain healthy habits. The debt avalanche strategy does appear to save you more money and time. This is unnecessary, though, if you’ve given up trying to pay off your obligations because the amount you owe appears insurmountable months after you’ve started.

The debt snowball method’s largest benefit is your sense of accomplishment and independence as you cross obligations off your list.

Effective for Maximizing Financial Savings: The Avalanche Approach

You might be more in line with the debt avalanche strategy if you’re driven more by process improvement and cost (and time) savings. If you used the snowball approach, you might lose motivation since you would lose money each month on unnecessary interest charges. Instead, you may get inspiration from paying the least amount of unnecessary interest each month.

The debt avalanche strategy will also help you become debt-free sooner!

The Bottom Line

In either case, it will need patience, but the key is to set a goal and stick with it. However, the best route is to consolidate your debts and deal with a single loan and interest. Symple Lending makes debt consolidation and simplification a breeze. Your current debts will decrease substantially if you maintain control over debts, avoid taking on unnecessary loans, and stay committed to your eventual goal. Symple Lending can help you stay on top of your debts.