Avalanche vs. Snowball: Two Powerful Ways to Pay Down Debt

According to the latest Equifax report, 1.4 million Canadians missed a credit payment in the second quarter of this year, up by 118,000 compared with the same time last year.

Debt can feel like a shadow that follows you everywhere—whether it’s a credit card balance that never seems to shrink, a lingering medical bill, or a loan that weighs heavily on your mind. If you’ve ever felt overwhelmed by debt, you’re not alone. Many clients we work with tell us they’ve carried their balances for years, always paying but never quite breaking free.

Here’s the good news: there are practical, proven strategies for paying off debt. Two of the most popular—and powerful—are called the Avalanche Method and the Snowball Method.

Let’s break them down so you can decide which one feels right for you.

The Avalanche Method 💥

Think of an avalanche: fast, powerful, and focused on the steepest slope first.

With the Avalanche Method, you prioritize paying off your debts based on interest rates—tackling the highest-interest debt first while still making the minimum payments on all the others.

For example:

• Credit Card A: $3,500 balance at 22% interest
• Credit Card B: $2,000 balance at 15% interest
• Loan: $5,000 balance at 7% interest

With Avalanche, you’d focus on Credit Card A (22% interest) because it’s costing you the most money in interest each month. Once that’s gone, you move to Credit Card B, and so on.

Why people love the Avalanche Method:

• It saves you the most money in the long term.
• You’ll likely get out of debt faster.
• It’s highly efficient.

The challenge: It may take a while before you actually eliminate your first debt. For some people, that delay can feel discouraging.

The Snowball Method ❄️

Now picture a snowball rolling down a hill—starting small but getting bigger and faster as it goes.

With the Snowball Method, you prioritize your debts based on balance size, not interest rate. You pay off the smallest balance first, then move on to the next, and so on.

Using the same example:

• Credit Card A: $3,500 balance at 22% interest
• Credit Card B: $2,000 balance at 15% interest
• Loan: $5,000 balance at 7% interest

Here, you’d start with Credit Card B (the smallest balance at $2,000). Once that’s cleared, you roll the payment amount into the next debt, creating momentum like a snowball gaining speed.

Why people love the Snowball Method:

• You see results quickly.
• Small wins keep you motivated.
• It builds positive momentum.

The challenge: You might pay more in interest compared to the Avalanche Method.

So, Which One Is Better?

Here’s the truth: the best method is the one you’ll actually stick with.

• If you’re motivated by saving money and efficiency, go with the Avalanche Method.
• If you’re motivated by quick wins and visible progress, choose the Snowball Method.

Both strategies work, but consistency is what really matters. A clear plan—and the discipline to follow it—will take you further than switching strategies or doing nothing at all.

Tips to Make Either Method Work for You

✔️ Automate payments so you never miss a due date.
✔️ Track your progress—watching your balances shrink is powerful motivation.
✔️ Celebrate milestones—every debt paid off is a win worth honouring.
✔️ Don’t forget your mindset—beating debt isn’t just about math, it’s about believing you can do it.

Final Thought

Paying off debt isn’t just about money—it’s about freedom. It’s about lifting the weight off your shoulders so you can breathe easier, dream bigger, and step into the next chapter of your life with confidence.

Whether you choose the Avalanche or the Snowball method, remember this: every payment is a step forward. Keep going. Your future self will thank you.