If you're juggling several debts, the order you attack them in decides how much interest you pay and how long it takes. Two methods dominate: the snowball and the avalanche. Both work — they just optimize for different things.
The debt snowball
Pay minimums on everything, then throw every spare dollar at your smallest balance first. When it's gone, roll that payment onto the next-smallest. Balances disappear quickly at the start, which delivers early wins that keep you motivated. The downside: you ignore interest rates, so you may pay a bit more overall.
The debt avalanche
Same idea, but you target the highest interest rate first. This is mathematically optimal — it always costs the least total interest and clears your debt soonest. The catch: if your highest-rate debt also has a big balance, it can take a while to see your first debt disappear, which tests your willpower.
Compare both for your debts
Enter your balances in the snowball vs. avalanche calculator to see the exact difference in time and interest — or use the focused debt snowball calculator to see your payoff order.
So which is better?
On pure math, avalanche wins — sometimes by hundreds or thousands of dollars if you carry high-rate credit-card debt. But personal finance is behavioural: studies and lenders consistently find that people who use the snowball are more likely to actually finish, because momentum matters. The best method is the one you'll stick with to the end.
A middle path
Many people knock out one tiny balance first for the psychological win, then switch to avalanche for the rest — capturing most of the interest savings without losing motivation early.
When neither is enough
If minimum payments alone barely dent your balances, a lower-rate consolidation loan or a debt-relief program may help. Compare reputable Canadian options before committing.
General information only, not financial advice.