Choosing Between Debt Avalanche and Debt Snowball

Rony Jacques

Let’s start with a closer look at the Debt Avalanche method, a strategy that's especially powerful if your main goal is minimizing the total amount of interest you pay over time. Here’s how it works—it prioritizes paying off debts with the highest interest rates first while you make minimum payments on everything else. Once that highest-interest debt is gone, you roll the amount you were paying into the next highest-rate debt, and so on. By tackling the most expensive debts first, you cut down on how much interest accrues overall. It’s the most cost-efficient approach.

Rony Jacques

Now, to put this into perspective, imagine you have three debts: one’s a credit card at 20% interest, another is a car loan at 5%, and the last is a student loan at 7%. If you only make the minimum payments, the 20% on that credit card is gonna pile up fast, costing you way more in the long run compared to the student loan or the car loan. But by focusing your efforts on crushing that high-interest credit card debt first, you can eliminate it quickly and use that freed-up cash to snowball down to the other two loans, which have much lower interest rates.

Rony Jacques

I had a client, Lisa, who had a similar setup—a high-interest credit card that was costing her nearly 200 dollars in interest alone every month. Instead of chipping away at all her debts evenly, we focused her efforts on the credit card. Once that was paid off, which happened in just about a year, she redirected those payments to her car loan. Over time, Lisa saved over five thousand dollars in what would’ve been interest payments. Five thousand dollars. For her, the Debt Avalanche wasn’t just about savings; it completely shifted her timeline to being debt-free.

Rony Jacques

It’s really about looking at the math and deciding if saving on interest—and becoming debt-free faster—is what motivates you the most.

Rony Jacques

Alright, let’s shift gears and talk about the Debt Snowball method. Now, this approach focuses on paying off your smallest debts first, regardless of interest rates. And you might wonder—why start with the smaller debts if they’re not costing you as much? Well, it’s more about psychology than numbers. Knocking out those smaller debts early gives you quick wins, which can be hugely motivating. It builds momentum and keeps you committed to the journey.

Rony Jacques

Here’s how it works: you line up all your debts from smallest to largest balance. Let’s say you have a $500 credit card balance, a $2,000 medical bill, and a $7,500 car loan. You focus all your extra payments on that $500 debt first, while still making minimum payments on the others. Once that’s done—boom!—you take the money that was going toward the first debt and apply it to the next smallest, and then the next. It’s kind of like rolling a snowball downhill, it just keeps getting bigger and bigger as you go.

Rony Jacques

Now, I want to share a story about a young couple I worked with, Mia and Josh. They were drowning in debt—credit cards, a personal loan, even back taxes. It was overwhelming. But we mapped it all out, and they started with the Snowball method. Their smallest debt was a $300 department store card. Paying that off didn’t save them boatloads of interest, but it gave them confidence. And then they tackled a $1,200 credit card next. With each small victory, they grew more motivated, more disciplined. Within three years—just three years—they had paid off everything and were completely debt-free. What stuck with them most wasn’t the exact numbers they saved, but the feeling of momentum, the sense of being in control of their finances for the first time ever.

Rony Jacques

That’s the beauty of the Debt Snowball. It’s not necessarily the cheapest way to pay off debt, but for some people, the psychological wins make all the difference.

Rony Jacques

So, when it comes to choosing between the Debt Avalanche and Debt Snowball methods, the key is understanding what drives you—what keeps you focused. Are you someone who thrives on seeing the numbers drop, on knowing you’re saving on interest, or are you more motivated by quick wins that build confidence? Both approaches are effective, but they resonate differently depending on your habits, your personality, and honestly, your emotional relationship with debt.

Rony Jacques

If you're like many of my clients, you might even find yourself thinking, "Well, I I want to save the most money, but I also kinda need that boost to stay on track." And that’s fine—you don’t have to stick rigidly to one method or the other. In fact, there’s room for flexibility. Let me give you an example. One of my clients, Mark, started with the Snowball method to knock out a few smaller debts and gain some momentum. But once he gained confidence, we pivoted to an Avalanche approach to tackle his larger, high-interest loans more efficiently. By combining elements of both strategies, Mark stayed motivated while still saving a ton on interest.

Rony Jacques

Here’s what I want you to do: take a moment to reflect on your finances. Write down all your debts, list their balances, and the interest rates. Ask yourself what would make you feel more in control—shrinking that list quickly with small successes, or knowing you’re attacking the most expensive debts first to maximize savings? Your answer will guide you to the right strategy—or even a blend of the two.

Rony Jacques

And don't forget, it’s not about being perfect right off the bat. The most important thing is you’ve you've got a plan and you stick with it. Adjust as needed, celebrate your progress, and remember—you’re moving toward financial freedom, step by step.

Rony Jacques

And that's all for today, my friends. It’s been great walking you through these strategies—Debt Avalanche, Debt Snowball, and even how to mix the two. Whether it’s saving money or building momentum, I hope you’re feeling empowered to start your own debt-free journey. Thanks for listening, and until next time, take care and keep moving forward.