If you have more than one debt, the hardest part is not the maths. It’s the feeling of being pulled in three directions at once. One card is charging scary interest, another has a smaller balance that annoys you, and the loan payment sits there every month like a permanent tax on your life.
That’s why the debt snowball and the debt avalanche are so effective. They give you a clear, repeatable system that removes decision fatigue. You always know what to do next, even on a tired day.
This post explains both methods in plain English, shows which one usually saves more money, and gives you a practical UK-friendly plan you can start today.
(If your goal is mortgage readiness, this links perfectly with your earlier post Credit Score UK Explained because the fastest way to lift affordability is often reducing revolving credit balances and stabilising payments.)
Debt Snowball And Debt Avalanche Explained
Both methods follow the same foundation:
- List all your debts
- Pay the minimum on every debt so you stay current
- Put all extra money towards one “target” debt
- When the target debt is cleared, roll that payment onto the next debt
- Repeat until you are debt-free
The difference is simply how you pick the target debt.
Debt snowball
With the debt snowball, you target the smallest balance first, regardless of interest rate.
The order is based on balance size:
- smallest debt first
- then the next smallest
- then the next
Why people love it:
- you get a win quickly
- motivation increases
- momentum builds
Debt avalanche
With the debt avalanche, you target the highest interest rate first, regardless of balance size.
The order is based on APR:
- highest APR first
- then next highest APR
- then the lowest APR last
Why people love it:
- you usually pay less interest overall
- you reduce the most expensive debt fastest
- it is mathematically efficient
The truth most people need to hear
Both methods work if you do one thing consistently:
Keep the minimums paid, and keep your extra payment steady.
Most people fail because they keep changing the plan, not because they chose the “wrong” method.
Which Method Pays Off Debt Faster
In pure maths terms, the avalanche usually wins on interest saved, and it often wins on speed too, especially when you have high APR credit cards.
But speed is not just maths. It is also behaviour.
If snowball keeps you consistent and avalanche makes you quit, snowball wins in real life.
A realistic UK example with numbers
Let’s use an example with three common debts and a fixed extra payment. (This is an illustration, not a promise of results.)
Debts
- Store card: £900 at 24.9% APR, minimum £27
- Credit card: £2,400 at 29.9% APR, minimum £72
- Personal loan: £3,000 at 9.9% APR, minimum £95
If you can pay £150 extra per month, your total monthly debt budget is:
- Minimums: £27 + £72 + £95 = £194
- Extra: £150
- Total monthly outflow: £344
Now compare the payoff order.
Snowball order
- Store card £900
- Credit card £2,400
- Personal loan £3,000
Avalanche order
- Credit card 29.9%
- Store card 24.9%
- Personal loan 9.9%
What happens in this example
Using those balances, APRs and payments:
- Both methods clear the debt in about 25 months
- Avalanche saves roughly £84 in interest compared with snowball in this scenario
- Snowball gives an early win faster, the store card clears around month 6
- Avalanche clears the credit card earlier, around month 13, which reduces expensive interest sooner
So what is the takeaway?
- Avalanche tends to save money
- Snowball tends to feel easier
- The “best” method depends on what makes you stick to the plan
When snowball is usually better
Snowball is often best when:
- you feel overwhelmed and need quick wins
- you have several small debts that mentally drain you
- you have tried “maths perfect” plans before and quit
- your extra payment is small and motivation matters more than optimisation
When avalanche is usually better
Avalanche is often best when:
- you have one or two very high APR debts
- you are financially stable enough to stay consistent without early wins
- you are focused on minimising interest and total cost
- you want the cleanest route to improving affordability for a mortgage
A simple decision rule
If motivation is your biggest problem, pick snowball.
If interest cost is your biggest problem, pick avalanche.
Either way, you are already making the move most people never make: you are choosing a system.
How To Do The Debt Snowball Step By Step
Snowball is simple, and that simplicity is the point.
Step 1 List your debts from smallest to largest balance
Create a list like this:
- Debt name
- Balance
- APR
- Minimum payment
- Due date
Do not overthink it. You just need a clear list.
Step 2 Choose your monthly extra amount
This is the amount you can pay on top of minimums every month.
Start smaller than you think if it helps consistency:
- £25
- £50
- £100
Consistency beats intensity.
Step 3 Pay minimums on every debt
This is non-negotiable.
Minimum payments keep your credit file clean and stop fees, missed payments, and defaults that make debt harder to escape.
Step 4 Throw every extra pound at the smallest debt
All extra money goes to the smallest balance until it is cleared.
Step 5 Roll the freed payment onto the next debt
When the smallest debt is cleared, you now have more money available each month because you no longer pay its minimum.
You roll that amount into the next debt, creating the “snowball”.
This is where the magic happens.
Example:
- You were paying £27 minimum on the store card
- You clear it
- Now you add that £27 to the next debt payment every month
Step 6 Repeat until debt-free
Every time a debt dies, your available “attack payment” grows.
Snowball is basically a momentum engine.
Why snowball works psychologically
Snowball creates visible progress quickly. That matters because debt repayment is emotional.
Early wins reduce:
- shame
- anxiety
- avoidance
And when avoidance disappears, your plan becomes easier.
UK practical tip for snowball
If you have overdrafts, treat them carefully.
Some overdrafts are expensive and some are persistent. If your overdraft is charging high daily interest or fees, it may need to be treated like a high APR debt even if its balance is small.
How To Do The Debt Avalanche Step By Step
Avalanche is just as simple, but the target order changes.
Step 1 List your debts from highest APR to lowest APR
You still list everything, but now the ranking is by interest rate.
This puts your most expensive debt first.
Step 2 Choose your monthly extra amount
Same rule as snowball. Pick something sustainable.
Avalanche works best when your extra payment is steady.
Step 3 Pay minimums on every debt
Again, non-negotiable.
Step 4 Throw every extra pound at the highest APR debt
All extra money goes to the highest interest debt until it is cleared.
Step 5 Roll the freed payment to the next highest APR
As each debt clears, you roll its payment to the next debt.
The difference is you are prioritising cost, not emotions.
Why avalanche usually saves more money
Interest is what makes debt heavy.
By attacking the highest APR first, you cut the most expensive “leak” in your finances sooner.
For credit cards in the UK, that leak can be brutal, especially when APR is high and balances are persistent.
The only real downside of avalanche
You might not get a quick win.
If your highest APR debt is also your biggest balance, it can take months before you clear anything, even though you are saving interest.
If you know that would cause you to quit, choose snowball. A plan you finish beats a plan you admire.
UK Specific Tips That Make Either Method Work Better
These are the practical details that often decide whether your plan succeeds.
Make payments automated
Automation protects you from human error.
Set up:
- direct debits for minimum payments
- standing order or scheduled transfer for your extra payment
If your money leaves your account automatically, you don’t have to rely on motivation.
Stop adding new debt while paying off old debt
This sounds obvious, but it is the main reason debt plans fail.
If you keep spending on the card you are trying to clear, you are running up an escalator that is moving down.
A practical rule:
- If you are using snowball or avalanche, your credit cards become payment tools only, or they go away temporarily.
Use the statement date to your advantage
If you are trying to improve credit readiness, the balance shown on your statement date matters because it is often what gets reported.
Even if you pay in full later, a high balance snapshot can look like high utilisation.
If a mortgage is on your horizon, consider paying down balances before the statement date for a cleaner report profile.
Consider balance transfers carefully
A balance transfer can reduce interest, which helps avalanche massively.
But be careful:
- transfer fees
- the end date of the promotional period
- what the rate becomes after the deal ends
- whether you will stop spending on the old card
Balance transfers are tools, not magic. They work best when paired with a clear repayment plan.
Debt consolidation can help, but only with discipline
Some people consolidate multiple debts into one lower rate loan.
This can help if it:
- reduces total interest
- simplifies payments
- stops the chaos
It can hurt if it:
- tempts you to run up the cleared cards again
- extends the repayment period
- hides the real spending behaviour
A good rule:
Consolidation can lower the temperature, but you still need a repayment system.
Build a small emergency buffer
If you have no buffer, one car repair or one bill spike sends you back to the card.
Even a small buffer helps:
- £300
- £500
- £1,000
You can build it alongside your debt plan, or build it first if you are fragile.
If you have high interest debt, investing comes later
For many people, clearing high APR debt is the best “return” available because it is guaranteed interest saved.
Once the debt is under control, you can redirect your snowball payment to:
- an emergency fund
- a Stocks and Shares ISA
- pension contributions
That is how you turn debt repayment into wealth building.
Common Mistakes And A Simple 30 Day Action Plan
Here is what usually goes wrong, and how to avoid it.
Mistake 1 Paying extra without a clear target
If your extra payment is randomly spread, you lose momentum.
Fix:
Pick snowball or avalanche and commit for 90 days.
Mistake 2 Quitting because it feels slow
Debt payoff always feels slow at the start, especially with interest.
Fix:
Track progress monthly, not daily. Even a £200 reduction is progress.
Mistake 3 Missing payments because of admin
Late payments can damage your credit file and create fees.
Fix:
Automate minimums, then automate the extra payment.
Mistake 4 Using credit cards for lifestyle while repaying debt
This is the silent killer.
Fix:
Swap to a debit card for daily spending while you run the plan.
Mistake 5 Trying to be perfect and then giving up
Perfection is not required. Consistency is.
Fix:
If you mess up one month, you do not restart. You continue.
A simple 30 day action plan
Use this to start immediately.
Day 1 to 3
- List all debts with balance, APR, minimum, due date
- Choose snowball or avalanche
- Choose your extra payment amount
Day 4 to 7
- Set direct debits for minimum payments
- Set an automatic extra payment to the target debt
- Remove saved card details from shopping apps
Week 2
- Build a £300 to £500 buffer if you have none
- Cut one expense and send the saving to your target debt
Week 3
- Review your statement dates and keep utilisation lower if mortgage plans are coming
- Avoid new credit applications and BNPL
Week 4
- Track progress and celebrate the movement
- Increase your extra payment slightly if your budget allows, even £10 helps
FAQs
Is snowball or avalanche better for credit score improvement
Both help because reducing debt and keeping payments on time supports your credit profile. Avalanche often reduces high APR credit card balances sooner, which can help utilisation and affordability. Snowball often helps you stay consistent, which protects payment history.
Should I clear my overdraft first
If your overdraft is expensive or constantly used, it may deserve priority. If it is small, snowball naturally handles it early. The best approach depends on the true cost and how it affects your month to month stability.
What if I can only pay an extra £25
That is enough. The plan is still valid. You are building the habit and the system. Over time, you can increase the extra payment as your income rises or your expenses fall.
Can I use a balance transfer while doing avalanche
Yes, and it can speed things up by lowering interest. Just be disciplined about fees, promo end dates, and not spending on the cleared card again.
Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice, credit advice, or a recommendation to take any specific product. Debt solutions depend on your circumstances, and interest rates and lender criteria vary. If you are struggling to make minimum payments or are facing serious financial difficulty, consider speaking to a qualified debt advice service.