What is the debt snowball method?

The debt snowball method means paying off your smallest debt first, regardless of interest rate. You make minimum payments on all debts except the smallest, which gets all your extra money. When it's paid off, you roll that payment to the next smallest debt.

What is the debt avalanche method?

The debt avalanche method means paying off your highest interest rate debt first. You make minimum payments on all debts except the one with the highest APR, which gets all your extra money. This mathematically minimizes total interest paid.

Which debt payoff method is better for freelancers?

It depends on your psychology and cash flow. Snowball provides quick wins that build momentum—good if you need motivation. Avalanche saves more money—good if you're disciplined. Many freelancers prefer snowball because the quick wins help during income fluctuations.

Debt Payoff for Freelancers: Snowball vs Avalanche Method

Two proven strategies, one goal

Both the Snowball and Avalanche methods will get you out of debt. The difference is the order you attack your debts—and that order affects your motivation and total interest paid.

Snowball

Pay smallest balance first

Quick wins build momentum
Psychological boost
Easier to stick with

Avalanche

Pay highest interest first

Mathematically optimal
Saves the most money
Faster debt-free date

How the Snowball method works

1
List all debts from smallest to largest balance
Ignore interest rates—only balance matters
2
Pay minimum on all debts except the smallest
All extra money goes to the smallest debt
3
When the smallest is paid off, roll that payment to the next
Your payment snowballs larger as each debt disappears

The key insight: early wins keep you motivated. Paying off a $500 credit card in 2 months feels great, even if a larger 22% APR card would be more "efficient" to tackle first.

How the Avalanche method works

1
List all debts from highest to lowest interest rate
Ignore balances—only APR matters
2
Pay minimum on all debts except the highest APR
All extra money attacks the most expensive debt
3
When that debt is paid, move to the next highest APR
You minimize total interest paid over time

The math is clear: attacking high-interest debt first means less money lost to interest. But the first win might take longer, which can be discouraging.

Example comparison

Let's say you have three debts and can put $500/month toward debt payoff:

Debt	Balance	APR	Minimum
Credit Card A	$2,500	22%	$50
Credit Card B	$800	18%	$25
Personal Loan	$5,000	10%	$100

Snowball Order

1. Card B ($800) — paid off month 2
2. Card A ($2,500) — paid off month 8
3. Loan ($5,000) — paid off month 18

Total interest: $1,420

First win: Month 2

Avalanche Order

1. Card A (22%) — paid off month 6
2. Card B (18%) — paid off month 8
3. Loan (10%) — paid off month 17

Total interest: $1,180

First win: Month 6

The verdict

Avalanche saves $240 and finishes 1 month earlier. But Snowball gets a win 4 months sooner. Which matters more to you?

Which method is best for freelancers?

Freelancers face unique challenges: income fluctuates, motivation matters more when times are tough, and you need flexibility. Here's our take:

Choose Snowball if...

You've tried to pay off debt before and gave up
Your income varies and you need motivation during slow months
The interest rate difference between debts is small

Choose Avalanche if...

You're disciplined and won't quit even without quick wins
You have a high-interest debt (20%+) that's costing you a lot
Saving every dollar matters more than psychology

The power of extra payments

Whichever method you choose, extra payments accelerate your debt-free date dramatically. Even $50/month extra can shave months off your timeline and save hundreds in interest.

Our Debt Payoff Planner lets you simulate extra payments to see exactly how much faster you'll be debt-free and how much interest you'll save.