Debt Snowball vs Avalanche: Which Works?
February 18, 2025 by Finquest FinancialPaying off debt is one of the most common financial goals for Canadians. Two popular strategies — the “debt snowball” and the “debt avalanche” — offer different paths to becoming debt‑free. But which one works best?
The Debt Snowball Method
With the snowball method, you pay off your smallest debts first while making minimum payments on larger ones. Each small win builds motivation, creating momentum like a rolling snowball. This method is especially helpful if you struggle with motivation and want to see quick progress.
The Debt Avalanche Method
The avalanche method focuses on interest rates. You target the debt with the highest interest first, while paying minimums on the rest. Over time, this saves more money and gets you debt‑free faster, though it requires patience since big wins may take longer to see.
Which is Better?
It depends on your personality and goals. If you need motivation and quick wins, snowball may be best. If you’re disciplined and want to minimize interest costs, avalanche is the smarter choice. Some Canadians even combine both methods depending on their debt mix.
How to Stay on Track
- Automate payments where possible.
- Track progress using free tools or apps.
- Revisit your budget monthly to ensure you’re freeing up money for debt repayment.
When Extra Expenses Interrupt
Unexpected bills can throw off even the best repayment plan. If you’re ever caught between covering essentials and sticking to your debt strategy, a payday loan can help keep you afloat temporarily. At Finquest Financial, our quick e‑transfer payday loans offer short‑term relief while you stay focused on long‑term debt goals.
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