If you’ve looked into paying off debt, chances are you’ve heard of the debt snowball method. It’s a popular strategy that tells you to pay off your smallest debts first, regardless of the interest rate. The logic is simple: by clearing out small balances quickly, you feel accomplished, stay motivated, and gain momentum—like a snowball rolling downhill and picking up speed.

There’s no denying the emotional power of the debt snowball. I’ve seen people light up as they pay off that first credit card or knock out a lingering medical bill. It feels good to make progress. But here’s the truth: the debt snowball isn’t always the fastest way to get out of debt—and it’s not always the cheapest, either.

Let’s break down how the debt snowball works, when it helps, when it might hold you back, and how to find a payoff method that’s tailored to both your mindset and your financial goals.

What Is the Debt Snowball?

The debt snowball method was popularized by personal finance expert Dave Ramsey. The approach is straightforward:

1. List all your debts from smallest to largest balance (not interest rate).
2. Pay the minimum on all debts except the smallest one.
3. Put every extra dollar toward paying off the smallest debt.
4. Once that debt is paid, move on to the next smallest, rolling over your payments—hence, the “snowball” effect.

It’s simple, it’s motivating, and it can work—especially for those who need quick wins to stay engaged in the process.

But while the debt snowball is great for motivation, it’s not always the most efficient use of your money.

The Flaw in the Debt Snowball Approach

Here’s the main problem: the debt snowball ignores interest rates.

By focusing on the smallest balances first, you could end up paying more in interest over time. If one of your largest debts has a high interest rate—like a 25% credit card—you’ll keep accruing interest on it while you’re busy knocking out smaller, lower-interest balances.

Let’s say you have the following debts:

• $1,000 credit card at 18% interest
• $3,500 personal loan at 7%
• $6,000 credit card at 25%

Using the debt snowball, you’d tackle the $1,000 credit card first—even though the $6,000 balance is burning through your wallet with high interest. Over the life of your payoff plan, that could cost you hundreds, even thousands, more.

If your goal is to get out of debt as fast and cheaply as possible, the debt snowball may not be your best option.

Meet the Debt Avalanche: A Faster Alternative

The debt avalanche method flips the debt snowball on its head. Instead of focusing on the smallest balance, you prioritize the debt with the highest interest rate first.

Here’s how it works:

1. List your debts from highest to lowest interest rate.
2. Pay the minimum on all debts except the one with the highest rate.
3. Put every extra dollar toward paying off that high-interest debt.
4. Once paid, move to the next highest rate, and so on.

In most cases, the debt avalanche will save you more money and shorten your payoff time—especially if you’re dealing with large, high-interest credit card balances. But there’s a catch: it doesn’t offer that quick psychological boost like the debt snowball. If you’re paying off a large balance first, you may go months without seeing a debt fully disappear.

That’s where the emotional side of money really kicks in.

The Emotional Advantage of the Debt Snowball

Even though it may cost more over time, the debt snowball works well for one reason: behavior change.

If you’ve struggled with debt for years, chances are your challenge isn’t just math—it’s motivation. Paying off a small debt quickly gives you a win. It proves you can do it. That small success can lead to big changes.

I’ve seen people abandon the debt avalanche simply because they felt like they weren’t making progress. On the flip side, the debt snowball kept them engaged, consistent, and focused.

That’s why it’s not just about what’s fastest on paper—it’s about what works for you.

A Hybrid Method: The Best of Both Worlds

Here’s the good news: you don’t have to choose just one method. You can create a hybrid plan that combines the motivation of the debt snowball with the savings of the debt avalanche.

Here’s how to build your own custom plan:

1. Start with one small balance to gain momentum and confidence.
2. After that’s paid off, shift focus to the highest-interest debt.
3. Continue tackling debt based on a mix of balance and interest rate—adjusting as needed.

This way, you get the emotional win of the debt snowball and the financial efficiency of the avalanche. It’s a flexible approach that honors both your brain and your heart.

How to Choose the Right Method for You

Here are a few questions to help you decide if the debt snowball is right for you—or if you should consider another path:

• Do you need a quick win to stay motivated?
• Are your interest rates wildly different across debts?
• Are your balances similar in size?
• Are you more emotional or logical when it comes to money?

If you’re highly motivated and can stick to a plan without seeing fast results, the avalanche might work better. But if staying on track has been a struggle, the debt snowball could give you the boost you need to finally gain traction.

Final Thoughts on the Debt Snowball

The debt snowball method has helped thousands of people take control of their finances—and if it works for you, that’s awesome. But it’s not the fastest, most cost-effective option for everyone.

If you’re serious about getting out of debt, take time to review your balances, interest rates, and personality. Don’t just follow a one-size-fits-all approach. Consider combining strategies. Mix in emotional wins with smart money moves.

The goal isn’t just to pay off debt—it’s to build lasting financial freedom. And that means choosing a method that works for your mind, your money, and your long-term future.

Remember: whether you use the debt snowball, the avalanche, or your own custom combo—the most important thing is that you keep going. Every payment brings you one step closer to a debt-free life.