The Problem With Minimum Payments
If you're only making minimum payments on multiple debts, you're barely moving the needle. Most of that payment goes to interest, and the balance barely shrinks. To actually get out of debt, you need a deliberate repayment strategy — and two methods dominate the conversation: the Debt Snowball and the Debt Avalanche.
The Debt Snowball Method
The snowball method, popularised by financial educator Dave Ramsey, focuses on quick psychological wins to build momentum.
How It Works
- List all your debts from smallest balance to largest, regardless of interest rate.
- Make minimum payments on all debts.
- Put every extra pound you can find towards the smallest debt.
- When that debt is paid off, roll its payment amount onto the next smallest debt.
- Repeat until all debts are gone.
The Advantage
You get wins quickly. Paying off a small debt gives you a genuine sense of progress and motivates you to keep going. For many people, this emotional momentum is what makes the difference between sticking with it and giving up.
The Disadvantage
You may pay more in interest overall, because you're not prioritising high-rate debts first.
The Debt Avalanche Method
The avalanche method is mathematically optimal — it minimises the total interest you pay over time.
How It Works
- List all your debts from highest interest rate to lowest, regardless of balance.
- Make minimum payments on all debts.
- Put every extra pound towards the highest-rate debt.
- When that debt is paid off, roll the payment onto the next highest-rate debt.
- Repeat until all debts are gone.
The Advantage
You pay less interest overall, which means you get out of debt faster in strict financial terms — assuming you stick with the plan consistently.
The Disadvantage
If your highest-rate debt also has a large balance, it may be months before you see your first payoff. That can feel discouraging.
Side-by-Side Comparison
| Feature | Snowball | Avalanche |
|---|---|---|
| Order of repayment | Smallest balance first | Highest interest rate first |
| Total interest paid | Typically more | Typically less |
| Speed to first payoff | Usually faster | May take longer initially |
| Best for | Motivation-driven people | Numbers-driven people |
| Psychological boost | High | Lower early on |
Which Method Should You Choose?
Here's the honest answer: the best method is the one you'll actually stick to.
If you know yourself and you need quick wins to stay motivated, use the snowball. The interest difference might cost you a bit more, but it's worth it if it means you actually finish the process rather than abandoning it halfway.
If you're disciplined, analytical, and can handle a slow start in exchange for a better financial outcome, the avalanche will serve you better.
You can also combine both. Some people use the snowball to eliminate one or two small debts first (for a quick confidence boost), then switch to the avalanche to tackle the rest efficiently.
How to Find the Extra Money to Throw at Debt
- Review and cut any subscription you don't use weekly
- Meal plan to reduce food waste and grocery spend
- Look for a balance transfer deal to reduce interest on credit card debt
- Sell unused items online
- Pick up extra shifts or a small side income temporarily
The Most Important Step
Stop adding to your debt while you're paying it off. That means putting the credit cards away (or freezing them — literally) and living within your budget. The best repayment strategy in the world won't work if new debt keeps piling on top.
Pick your method, start this month, and keep going. Debt has an end — you just have to reach it.