How to pay off debt: snowball vs avalanche

Owing money feels heavy, and it's easy to avoid looking at it. But debt is one of the most solvable money problems there is — there's a clear, boring, proven way out. You don't need to be clever, just consistent.

Before any strategy, list every debt in one place. For each one, write down four things:

• Who you owe (card, loan, overdraft, buy-now-pay-later).
• How much is left (the balance).
• The interest rate (APR) — how expensive it is.
• The minimum monthly payment.

Seeing it all written down is uncomfortable for about five minutes and then genuinely freeing. You can't make a plan for something you're refusing to look at.

Whatever else you do, pay at least the minimum on every debt, every month. Missing minimums means fees and damage to your credit — the opposite of progress.

So the real question isn't 'which do I pay?' — it's 'where does my spare money go?' Both methods below are just different answers to that one question.

Throw every spare euro at your smallest balance first (while paying minimums on the rest). When it's gone, roll that whole payment onto the next-smallest, and so on — it snowballs.

Why it works: quick wins. Clearing a whole debt in a few weeks feels amazing, and that momentum keeps you going. It's about motivation as much as maths.

Throw every spare euro at your highest-interest debt first (again, minimums on the rest). When it's cleared, move to the next-highest rate.

Why it works: it's the cheapest. High-interest debt costs you the most, so killing it first saves the most money and time overall. It's the mathematically optimal route.

Avalanche saves you a bit more money. Snowball keeps you motivated with faster wins. Here's the honest truth: the best method is the one you'll actually stick with to the end.

If numbers motivate you, go avalanche. If you need to feel progress or you've quit before, go snowball — the small win in week two is often what keeps people going. Either beats no plan by a mile.

Both methods work faster with more spare money aimed at the target debt. You don't need a fortune — even €30 or €50 extra a month meaningfully shortens the journey.

A simple budget helps you find that money without feeling deprived: see where it's going, trim one or two leaks, and point the difference at your smallest (or priciest) debt. Then just keep going.