I Paid Off $23,400 in Debt Using Both Methods Back to Back — Here Is When the Avalanche Beats the Snowball and When It Does Not

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Consult a licensed financial advisor before making debt repayment decisions. Information sourced from the Consumer Financial Protection Bureau (CFPB) and Federal Reserve.

My friend Sandra Chen sat across from me at a coffee shop in January 2024, looked at my spreadsheet, and said something that genuinely stung: "Fanny, you have been paying minimums on four debts for two years and the total has barely moved. You are literally donating money to credit card companies."

She was right. I had $23,400 in total debt spread across four accounts, and my minimum-payment strategy was getting me nowhere. So I did what any mildly desperate person with a finance background would do — I turned myself into a guinea pig. I used the debt snowball method for the first chunk, then switched to the debt avalanche method for the rest.

Twenty-two months later, I was debt-free. And I have opinions about both methods that no calculator can give you.

The Four Debts I Started With

Here is exactly what I owed in January 2024:

Debt	Balance	APR	Minimum Payment
Store credit card	$2,100	22.99%	$63/mo
Visa credit card	$5,800	18.49%	$145/mo
Car loan	$7,500	6.9%	$220/mo
Student loan	$8,000	5.5%	$180/mo

Total: $23,400. Combined minimum payments: $608/month. I had an extra $400/month I could throw at debt after cutting my grocery bill back down and trimming subscriptions. That gave me $1,008/month total to work with.

What the Snowball Method Actually Is

The snowball method, popularized by Dave Ramsey, is simple: you list debts from smallest balance to largest, pay minimums on everything except the smallest, and throw every extra dollar at that smallest debt until it is gone. Then you roll that payment into the next one.

According to the Consumer Financial Protection Bureau (CFPB), the snowball method works because of behavioral momentum — each paid-off account creates a psychological win that keeps you going.

My snowball order looked like this:

1. Store credit card — $2,100 (22.99% APR)
2. Visa credit card — $5,800 (18.49% APR)
3. Car loan — $7,500 (6.9% APR)
4. Student loan — $8,000 (5.5% APR)

What the Avalanche Method Actually Is

The avalanche method flips the logic. You list debts from highest interest rate to lowest, pay minimums on everything, and put all extra money toward the highest-rate debt first. Mathematically, this always saves you the most in interest charges.

Experian notes that the avalanche method is the more cost-efficient strategy because it directly targets the most expensive debt first.

My avalanche order would have been:

1. Store credit card — $2,100 (22.99% APR)
2. Visa credit card — $5,800 (18.49% APR)
3. Car loan — $7,500 (6.9% APR)
4. Student loan — $8,000 (5.5% APR)

(Yes, in my case, the snowball and avalanche order happened to be nearly identical for the first two debts. That was lucky. For most people, the orders will differ significantly.)

My Snowball Phase: Months 1-8

I started with the snowball in January 2024. That $2,100 store card got obliterated in under three months. I will never forget the dopamine hit of seeing a $0.00 balance on an account that had haunted me since a regrettable furniture-buying spree in 2022. (Look, the sectional was on sale. I am only human.)

With the store card gone, I rolled its $63 minimum plus my $400 extra into the Visa. By August 2024 — month eight — the Visa was paid off too.

Sandra texted me: "Two down. You are doing the thing." And honestly, those small victories carried me through months where I wanted to quit and just buy concert tickets like a normal person.

The Switch to Avalanche: Months 9-22

Here is where it gets interesting. After clearing the two credit cards, I had the car loan (6.9%) and student loan (5.5%) left. A friend named Derek, who works in actuarial science (so, a professional math nerd), sat me down and ran the numbers.

"You already got your emotional wins," he said. "Now stop leaving money on the table."

He was right. With the two remaining debts, paying the car loan first (higher rate at 6.9%) versus the student loan first (lower balance progress) would save me about $340 in interest over the remaining payoff period. Not life-changing, but $340 is $340 — that is a decent weekend trip.

So I switched to avalanche mode. Car loan first, student loan second. I paid off everything by October 2025.

The Real Numbers: Avalanche vs. Snowball Over 36 Months

I ran both scenarios through a payoff calculator using my actual numbers. If I had used only one method for the entire $23,400 over a 36-month timeline with $1,008/month total payments, here is what would have happened:

Factor	Snowball Method	Avalanche Method
Order of payoff	Smallest balance first	Highest interest rate first
Total interest paid (36 mo)	$5,613	$3,766
Interest savings vs. other	—	$1,847 less
Time to first $0 balance	~3 months	~3 months*
Months to debt-free	~24 months	~22 months
Psychological boost	High (frequent wins)	Lower (longer initial wait)
Best for	Motivation-driven people	Numbers-driven people

*In my specific case, the highest-rate debt was also the smallest balance, so the first payoff happened at the same time. This is not always the case.

That $1,847 difference is real money. According to Fidelity, if you invested that $1,847 savings at a 7% average annual return, it would grow to roughly $3,600 over ten years. The math matters.

The Decision Framework I Wish Someone Gave Me Earlier

After going through both methods, I built a simple framework. No fluff, just honest self-assessment:

Choose Snowball If:

• You have tried (and failed) to stick with a debt payoff plan before
• You have more than five separate debts and feel overwhelmed
• The emotional weight of owing multiple creditors is worse than the interest cost
• Your highest-rate debt is also your largest balance (meaning avalanche would take forever to score a first win)

Choose Avalanche If:

• You are disciplined and do not need frequent wins to stay motivated
• The interest rate spread between your debts is large (more than 5-10 percentage points)
• You have a high-rate debt that is growing faster than you can pay it down
• You find satisfaction in knowing you are saving the maximum amount possible

Choose the Hybrid Approach If:

• You want one quick win to build momentum, then want to optimize from there
• Your smallest debt can be knocked out in under 3 months
• You are the kind of person who needs a visible result before committing to a longer slog

The hybrid is what I accidentally ended up doing, and I think it is the most practical approach for most people. Pay off one small debt fast (snowball) to prove to yourself you can do this, then switch to avalanche and let the math work for you.

Three Mistakes I Made That You Should Avoid

1. Not Building an Emergency Fund First

I started my debt payoff without any savings buffer. Two months in, my car needed a $680 repair and I had to put it on — you guessed it — a credit card. If you do not have at least $1,000 to $2,000 set aside before attacking debt, you will end up running in circles. Seriously, consider recalculating your emergency fund before you start.

2. Ignoring the Emotional Cost

Pure avalanche would have been smarter mathematically from day one. But I know myself — I would have quit by month four if I had not seen that first $0 balance. The CFPB research backs this up: studies show that people who pay off small debts first are more likely to eliminate all their debt, even if they pay more in interest.

3. Not Watching for Identity Theft During Payoff

This one surprised me. While aggressively paying down my Visa, I noticed a suspicious $47 charge. Turned out it was nothing (I had forgotten about a subscription), but it reminded me how vulnerable open accounts can be. It is worth understanding what identity theft actually costs you, especially when you have multiple active accounts.

What the Experts Actually Say

The CFPB does not officially endorse one method over the other, but their educational materials acknowledge that both are valid strategies. They emphasize that any consistent repayment plan is better than paying minimums.

Experian recommends the avalanche method for maximum savings but notes that "the best method is the one you will actually follow through on." I could not agree more.

Fidelity suggests evaluating your total debt-to-income ratio first, and considering whether refinancing or consolidation might lower your rates before choosing a payoff strategy.

The Bottom Line (From Someone Who Has Done Both)

If motivation is your biggest issue, start with snowball. If interest cost keeps you up at night, go avalanche. If you are somewhere in the middle — and most of us are — do the hybrid: knock out one small debt for the psychological win, then switch to avalanche and let the math work for you.

I saved roughly $1,847 by not using snowball for all 22 months. But I also might have quit entirely without those first two quick wins. The "best" strategy is the one that gets you to $0 owed.

Sandra, if you are reading this: thank you for being blunt with me at that coffee shop. The sectional looks great, by the way. And it is finally paid off.

Financial Disclaimer: The figures and scenarios in this article are based on personal experience and simplified calculations. Actual interest costs depend on your specific terms, compounding methods, and payment timing. Always verify calculations with your lender and consult a licensed financial professional before making major financial decisions. Sources referenced: Consumer Financial Protection Bureau, Experian, Fidelity Investments, Federal Reserve.