The “Debt Avalanche” vs. “Snowball” Debate - Which Is Best?

Introduction: Avalanche vs Snowball

Debt avalanche (high-interest first) saves money, snowball (small debts first) builds motivation, per NerdWallet. In 2025, this guide debates which is best and how Onu’s AI customizes for you.

With Onu, select the optimal method.

Avalanche vs Snowball Explained

Methods, per Bankrate:

• Avalanche: Saves interest.
• Snowball: Builds momentum.

Example: Avalanche on $10,000 debt saves $500 in interest.

Avalanche vs Snowball Comparison

Pros/cons:

Insight: Avalanche for math, snowball for psychology.

Step-by-Step: Choosing a Method

30-day plan to select and implement:

1. Audit Debt (Days 1–5): List with Onu. Example: $5,000 at 15%, $2,000 at 5%.
2. Compare (Days 6–10): Simulate methods. Example: Avalanche saves $300.
3. Choose (Days 11–15): Based on goals. Example: Snowball for motivation.
4. Automate (Days 16–20): Onu auto-pays. Example: $200/month to small debt.
5. Track (Days 21–25): Monitor progress. Example: Paid one debt.
6. Review (Days 26–30): Switch if needed. Example: To avalanche.

Real-Life Example: Method Choice

Meet Alex, $12,000 debt:

• Audit: Listed debts.
• Compare: Onu showed avalanche saves $400.
• Choose: Snowball for wins.
• Automate: Paid small debts.
• Track: Cleared three debts.

Result: Debt-free in 2 years.

Financial Impact of Methods

Benefits:

• Avalanche: Saves $500 interest on $10,000 debt.
• Snowball: Motivates to pay 20% faster.

Example: Snowball builds momentum for long-term.

Context: Debt Methods in 2025

Trends from Forbes:

• Hybrid: Combination popular.
• AI: Tools like Onu customize.

Example: Snowball for psychological wins.

Final Thoughts

Avalanche saves money, snowball motivates. Onu’s AI helps choose. Start your payoff today.

Sources: NerdWallet (2024), Bankrate (2024), Forbes (2025). This article is for informational purposes only and not financial, legal, or tax advice.