PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss options.

Has Debt Taken
Over Your Life?

Should I choose the debt avalanche or the snowball?

Dealing with overwhelming credit card debt can often feel like you are being buried. This is why it is no surprise that the two most famous methods for dealing with credit card debt take their names from snow: the avalanche and the snowball .

Which of these factors is right for you depends on your particular situation and temperament. According to Forbes Magazine, the debt snowball involves working on the smallest balance first while the debt avalanche centers on paying off the highest interest rate first.

Who is the debt snowball best for?

The debt snowball is best for an individual who wants constant “small victories” in order to keep their motivation up. Using the debt snowball, you focus on paying off the smallest debt first, so that you can experience the success of eliminating one of your debts. Then, you move on to the next smallest one.

The negative to the debt snowball is that it ignores interest. This means that, depending on the nature of your debt, you may end up paying more money with the debt snowball.

Who is the debt avalanche best for?

The debt avalanche zooms in on the debt that has the highest interest rate. This is best for an individual who wishes to minimize the overall amount of money that they spend on their credit card debt.

Eliminating the highest interest rate first does mean that you end up paying the least amount of interest overall, but it may take you a long time to pay off that first high-interest debt depending on how big it is.

FindLaw Network