Question 1

What is the debt avalanche method?

Accepted Answer

The debt avalanche method prioritises paying off the debt with the highest interest rate first while making minimum payments on all others. Once the highest-rate debt is cleared, you roll its payment onto the next highest-rate debt. This approach minimises total interest paid and is mathematically the most efficient way to eliminate multiple debts.

Question 2

Does the avalanche method always save more money than the snowball method?

Accepted Answer

Yes, mathematically the avalanche method always results in less total interest paid compared to the snowball method (which targets the smallest balance first). The difference can range from negligible to several hundred pounds depending on your balances and APRs. The snowball method may be psychologically easier for some people due to quicker early wins, but the avalanche wins on pure numbers.

Question 3

What if two debts have the same APR?

Accepted Answer

If two debts share the same APR, the order you pay them off does not affect the total interest paid - they are equivalent from a mathematical standpoint. A common tie-breaker is to target the smaller balance first (the snowball approach) for a psychological win, or simply pick either one. Our calculator will assign them in the order you entered them.

Question 4

How much difference do extra monthly payments make?

Accepted Answer

Extra monthly payments can dramatically reduce both the time to pay off debt and the total interest paid. For example, adding £100 extra per month to a £10,000 debt at 20% APR with a £200 minimum payment can cut the payoff time from over 8 years to under 4 years and save over £3,000 in interest. Use the extra payment field to see the impact of different amounts.

Question 5

How does debt consolidation compare to the avalanche method?

Accepted Answer

Debt consolidation rolls multiple debts into a single loan, ideally at a lower interest rate. If you can secure a consolidation loan at a lower rate than your current debts, it simplifies payments and can reduce interest costs. However, consolidation loans sometimes carry fees, and extending the term can increase total interest even at a lower rate. The avalanche method costs nothing to implement and is always worth modelling first.

Question 6

What counts as a minimum payment?

Accepted Answer

Credit card minimum payments are typically the greater of a fixed amount (often £25) or a percentage of the balance (usually 1-3%). Loan minimum payments are fixed monthly instalments. Our calculator uses the minimum payment you enter for each debt. If you only ever pay minimums on credit cards, the percentage-based minimum falls as the balance falls, meaning you barely touch the principal in early months.

Question 7

Should I use avalanche if one debt is interest-free?

Accepted Answer

If one of your debts is at 0% (such as a balance transfer card still in its introductory period), the avalanche method will naturally put it last since zero is the lowest rate. This is correct - pay minimums on the 0% debt and throw everything at your high-interest debts first. Just make sure the 0% period does not expire before you clear or re-transfer that balance.

Factor	Avalanche (APR first)	Snowball (balance first)
Total interest paid	Lowest possible	Slightly higher
Speed to debt-free	Fastest overall	Slightly slower
Motivation / psychology	Harder - may take longer to see first win	Easier - quick early wins
Best for	Spreadsheet-minded, high-APR debts	Those needing motivation boosts
Difference in practice	Often small (£50-£500) unless APR spread is large · both are far better than minimum payments only

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