Debt Snowball vs Avalanche: A Simple Guide and Printable Planner

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Paying off debt can feel heavy, but a clear plan makes it lighter. Two of the best-known plans are the debt snowball and the debt avalanche. In this guide you will see how each one works in plain words, which one might suit you, and how to stay on track until the last payment.

This post is for information only and is not financial advice. If you are struggling with debt, a qualified non-profit credit counsellor can help you choose the best plan for your situation.

See the printable Debt Payoff Planner

Try the free Debt Snowball Calculator

Step 1: List all your debts

Write down every debt in one place: the name, the balance, the interest rate and the minimum monthly payment. Seeing everything on one page can feel uncomfortable, but it is the first step to taking control.

What is the debt snowball?

With the snowball method you list your debts from the smallest balance to the largest. You pay the minimum on every debt, and put every extra bit of money on the smallest one. When it is paid off, you add its payment to the next smallest debt. The payments "roll" forward like a snowball getting bigger.

The big advantage is motivation. You finish the first debt quickly, and each win keeps you going.

What is the debt avalanche?

With the avalanche method you list your debts from the highest interest rate to the lowest. You pay the minimum on every debt, and put every extra bit of money on the one with the highest rate. The advantage is that this method usually costs less in interest over time. The first win can take longer to arrive.

A simple example

Imagine three debts, made up for this example: a store card with a balance of 300, a credit card with a balance of 900 and a loan with a balance of 4,000.

• Snowball order: store card (300), then credit card (900), then loan (4,000).
• Avalanche order: whichever has the highest interest rate first, then the next highest, and so on. If the credit card has the highest rate, it goes first.

In both plans you pay the minimum on all three. The only difference is where the extra money goes.

Which method should you choose?

• Need quick wins to stay motivated? Try the snowball.
• Want to pay less interest? Try the avalanche.
• Not sure? Start with a very small debt for a quick win, then switch to the highest rate.

The best plan is the one you will stick with.

Find extra money for your plan

• Plan meals for the week and use a shopping list.
• Cancel subscriptions you no longer use.
• Call companies to ask for a better rate on bills.
• Sell items you do not need.
• Put bonuses, tax refunds or gifted money towards your first target debt.

Track your progress on paper

Seeing your balance fall is powerful. A paper tracker lets you colour in a box with every payment, and a progress bar for each debt shows how far you have come.

Get the Debt Payoff Planner

The planner has 27 pages, including a debt overview, snowball and avalanche worksheets, a tracker for each debt, a payoff thermometer, a 100-box chart, a monthly budget snapshot and monthly check-ins.

Supplies that make it easier

1. A 3-ring binder to keep your pages together.
2. A 3-hole punch to prepare your printed pages.
3. A set of fineliner pens for neat notes.
4. Pastel highlighters to colour in your progress bars.
5. A simple desk calculator to check your balances.
6. Sticky page flags to mark due dates.

Tips to stay motivated

• Put your tracker where you see it every day.
• Celebrate every paid-off debt with a small, low-cost reward.
• Check in once a month to write down your wins and your next step.
• If a month goes badly, restart the next month. Progress is not a straight line.

Frequently asked questions

Which is better, snowball or avalanche?

Neither is better for everyone. The snowball gives quick wins, and the avalanche usually costs less in interest. Choose the one you will keep doing.

Do I still pay the minimum on every debt?

Yes. In both methods you pay the minimum on all debts and use the extra money on your target debt.

What happens when I pay off a debt?

You add that debt's payment to the next debt on your list, so your payments grow.

Is the planner financial advice?

No. It is an organising tool to help you list, plan and track your debts. For advice about your own situation, speak to a qualified professional.

Start with one page today

You do not need to fix everything in one day. Write down your debts, choose a method and make your next payment. Small steps add up.

Get the printable Debt Payoff Planner