Debt Snowball vs. Debt Avalanche: Which Payoff Strategy is Better?

Coins, credit cards, a calculator, and dice spelling 'DEBT' on a document, with a text box about debt payoff strategies and the First Pioneers Federal Credit Union logo.

If you’re working hard to get out of debt, you’re definitely not alone. A lot of people are dealing with credit cards, personal loans, or car payments that can make it tough to get ahead.

But there are some solid strategies that can help pay off your debt faster and without feeling overwhelmed.

Two of the most popular methods we’re going to cover here are the Debt Snowball and Debt Avalanche. Both can be effective but they work a little differently and suit different types of people.

At First Pioneers Federal Credit Union, we’re here to break them down in simple terms for our members in Acadiana so you can figure out which one works best for your situation.

What is the Debt Snowball?

The Debt Snowball method helps you build momentum by tackling your smallest debt first. You continue making minimum payments on everything, but throw any extra cash you can at the debt with the lowest balance.

Once that one’s paid off, you move to the next smallest. As you knock each one out, your motivation grows, kind of like a snowball rolling downhill and getting bigger. 

Advantages of the Debt Snowball

  • Quick Wins Keep You Motivated. Paying off a small balance feels great. If you need a mental boost to keep going, this method gives you that sense of accomplishment early in the process. It’s especially helpful if you’ve struggled to stick with a plan in the past.

  • Easier to Build Confidence. Watching debt disappear one by one can increase your confidence to tackle the bigger ones. It’s a great way to turn small progress into lasting habits.

  • Creates Positive Momentum. Each time you pay off a debt, the money you were using for it rolls over to the next one. Your monthly payoff power grows, and makes it easier to stay on track.

What to Keep in Mind

You might pay more interest overall, since you are not prioritizing high-interest debts first. But based on what we’ve seen with many members, the emotional boost makes it worthwhile.

What is the Debt Avalanche Method?

The Debt Avalanche method focuses on interest rates instead of the size of your balances. You keep making minimum payments on all your debts, but put any extra money towards the debt with the highest interest rate first. This approach helps you save the most money over time.

Advantages of the Debt Avalanche

  • Reduce the Total Amount You Pay. By paying off the high-interest debt first, you cut down on the interest stacking up each month.

  • Great for Logical Thinkers. If you’re more numbers-driven and like seeing the math work in your favor, this strategy is often most efficient.

  • Ideal If Your High-Interest Debt is Manageable. If your highest interest rate is on a smaller or mid-sized balance, you can still get a quick win while maximizing your savings at the same time.

What to Keep in Mind

It can take longer to see your first debt disappear, especially if your highest-interest debt has a huge balance. That can feel discouraging at first, so it’s important to stay focused on the bigger financial picture.

How to Choose the Right Strategy

There’s no one-size-fits-all answer. It really comes down to your mindset and goals. 

  • Do small wins keep you going? The snowball method might be better for you. If checking things off a list and getting those early victories helps push you, this could be the perfect fit. 

  • Are you focused on long-term savings? The avalanche method will likely save you more money and help you pay off debt faster, especially if your high-interest debts have big balances.

  • Are you managing both high-interest and small debts? You can even create a hybrid approach. For example, pay off a small credit card first for the win, then switch to the avalanche method for the rest. 

  • Need local help figuring it out? If you’re in Lafayette, Iberia, Vermilion, St. Martin, or Acadia Parish, or if you’re an immediate family member of one of our current members, and feel stuck, we’re happy to sit down with you. We’ll help you find an approach that works best for your situation.

Read more: Good Debt vs. Bad Debt

Let’s Tackle Your Debt Together

You don’t have to do this alone. At First Pioneers, we’re more than just a credit union, we’re your financial partner.

Stop by or reach out to talk about your goals and challenges. We’ll help you build a plan you can actually stick to, no matter where you’re starting from.

Visit or contact us today with questions about managing debt, loans, or personal finances. We’re proud to be one of the most trusted financial institutions near you in Lafayette and New Iberia, LA, and we’re ready to help you take control of your financial future.

Dian Puspasari