Does the debt snowball cost more than the avalanche?
With these three cards and $650 a month, the snowball costs $211 more in interest than the avalanche and takes 1 month longer.
The worked example
Three cards: Card A, $1,500 at 22%; Card B, $4,500 at 29%; Card C, $9,000 at 25%. Minimums of $45, $155 and $280, and $650 a month to cover all of them.
| You put in | |
|---|---|
| Card A | $1,500 at 22%, $45 minimum |
| Card B | $4,500 at 29%, $155 minimum |
| Card C | $9,000 at 25%, $280 minimum |
| Total owed | $15,000 |
| Monthly budget for all of them | $650 |
| Avalanche: highest APR first | |
| Avalanche: order paid off | Card B, Card C, Card A |
| Avalanche: debt-free in | 32 months (about 2.7 years) |
| Avalanche: interest | $5,771 |
| Snowball: smallest balance first | |
| Snowball: order paid off | Card A, Card B, Card C |
| Snowball: debt-free in | 33 months (about 2.8 years) |
| Snowball: interest | $5,982 |
| The difference | |
| Extra interest the snowball costs | $211 |
| Extra months the snowball takes | 1 month |
Every figure on this page is computed from these inputs by the same calculator the channel’s Shorts use.
Run your own numbers
The calculator starts at the worked example. Change any figure to see yours.
| Method | Debt-free in | Total interest | Payoff order |
|---|---|---|---|
| Avalanche (highest APR first) | 32 months (about 2.7 years) | $5,771 | Card B → Card C → Card A |
| Snowball (smallest balance first) | 33 months (about 2.8 years) | $5,982 | Card A → Card B → Card C |
The snowball costs $211 more in interest and takes 1 more months than the avalanche for these debts.
Educational content, not financial advice.
Next step
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The Debt Payoff Tracker spreadsheet
List every debt, compare the avalanche and the snowball, and track each month's payments.
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Your next moves
List every debt
Balance, APR and minimum for each one. Your statements have all three, and the tracker keeps them in one place.
Set one monthly budget
At least the sum of the minimums; anything above it is what speeds the payoff up.
How the two methods work
Both methods pay every minimum every month, $480 here, and send the rest of the budget, $170, to one target card. The avalanche targets the highest APR, Card B at 29%. The snowball targets the smallest balance, Card A at $1,500. When a card is paid off, its minimum joins the money aimed at the next target, so that amount grows each time.
The only difference is the order, and the order only matters when the smallest balance is not also the highest rate. Here the smallest card has the lowest rate, so the snowball spends its first months clearing 22% debt while 29% debt keeps charging.
What people get wrong
People often treat the choice as huge. With these cards the gap is $211 and 1 month. Both plans spend the same $650 a month, and the budget, not the order, does most of the work.
The opposite mistake is assuming the avalanche always wins by a lot. When the smallest balance also carries the highest rate, both methods pick the same card first. Give Card A 29%, Card B 25% and Card C 22% and the two orders cost exactly the same: $4,978 each.
How to read the result
Read the interest gap and the months gap together. A large interest gap is money the cheaper order keeps for you. A small one means the snowball’s early wins, a card gone in the first months, may be worth more to you than the difference.
Either order beats paying minimums with no plan. Enter your own cards and budget in the calculator above: it shows both orders side by side, with the order each one pays the cards off and the month you would be debt-free.
Use the minimum from each statement rather than a rounded guess, and rename or add cards to match yours. The minimums decide how much of the budget is left over for the target card, so they move both results.
Questions
Which is better, the debt snowball or the debt avalanche?
The avalanche is built to cost the least interest; how much it saves depends on your debts. With these three cards the avalanche saves $211 and 1 month. If the snowball keeps you paying, a small gap can be worth it.
When do the snowball and avalanche give the same result?
When the smallest balance also has the highest rate, both methods pay the same card first. Swap the rates in this example so it is Card A 29%, Card B 25% and Card C 22%, and both orders cost $4,978 in interest.
Do I need extra money for either method?
Only enough to cover every minimum. Here the minimums add up to $480; the other $170 of the $650 budget is what each method aims at its target card.
Interest compounds monthly at APR ÷ 12 and each payment lands at the end of the month, after that month’s interest. Every minimum is paid every month, the rest of the budget goes to the target card, and a paid-off card’s minimum rolls into the money for the next one. Disclaimer