Free guide · 3-minute read

Two methods. One winner, for you.

Both clear your debts. They differ on one thing only: which debt gets your extra money first. That one choice decides how the journey feels, and whether you finish it.

Two proven ways to clear multiple debts. Both start the same way: pay the minimum on everything, then put every spare pound toward one debt at a time. The only difference is which debt you attack first.

Snowball

Smallest balance first

Clear your smallest debt first, then roll what you were paying into the next-smallest. Balances disappear one by one.

  • Best for motivation. Fast, visible wins keep you going.
  • You may pay a little more interest overall.

Avalanche

Highest APR first

Clear your highest-interest debt first, whatever its size, then roll into the next-highest APR. The maths-optimal route.

  • Pays the least interest and is usually debt-free soonest.
  • Your first win can take longer. It tests willpower.

Worked example

The same debts, two orders.

Say you have these three debts and £150 spare each month. Watch which debt each method sends the money to first.

SnowballSmallest balance first
  1. 1Store card £600 · 25% APR
    ✓ Cleared first, quick win
  2. 2Overdraft £1,200 · 40% APR
    ✓ Cleared second
  3. 3Credit card £4,000 · 21% APR
    ✓ Debt-free
AvalancheHighest APR first
  1. 1Overdraft £1,200 · 40% APR
    ✓ Cleared first, dearest debt gone
  2. 2Store card £600 · 25% APR
    ✓ Cleared second
  3. 3Credit card £4,000 · 21% APR
    ✓ Debt-free

The takeaway: Avalanche puts the 40% APR overdraft first, so the most expensive interest stops fastest. Snowball puts the £600 store card first, so you finish a whole debt sooner, and feel it working.

The Decision

How to choose.

  • Pick Snowball if you need early wins to stay motivated.

  • Pick Avalanche if you're numbers-driven and want to pay the least interest.

  • Either one beats minimums-only by years. The best method is simply the one you'll keep doing.

This guide is for general educational and budgeting purposes only and is not financial, legal, tax, or debt advice. It does not guarantee any particular outcome and creates no advisory relationship. Your circumstances are unique, consider speaking to a qualified, regulated adviser, and if you're struggling, free regulated help is available from StepChange, Citizens Advice, National Debtline and MoneyHelper (UK).

Next Step

Picked your method? Let's run your actual numbers.

In a 1:1 session we apply snowball or avalanche to your real debts and build the monthly schedule together, with a debt-free date you can circle.

Book a 1:1 Session