Both Debt Avalanche and Debt Snowball methods help you pay off loans faster — but the best one depends on your mindset and money habits.
Debt Avalanche (Best for Saving Interest):
You pay off the highest interest debt first (e.g., credit cards, personal loans).
This method saves the most money on interest over time.
Ideal for: People who are analytical, motivated by numbers, and want the most efficient strategy.
Debt Snowball (Best for Quick Wins):
You pay off the smallest loan first, regardless of interest rate.
Helps build momentum and motivation by showing quick progress.
Ideal for: People who are emotionally overwhelmed by debt and need fast encouragement.
On CashVanto, we recommend the Debt Avalanche method if your goal is to become debt-free faster and save more money.

1️⃣ Debt Avalanche Method – Save the Most on Interest
Focus on high-interest debts first (like credit cards).
Make minimum payments on all other debts, and put extra money toward the highest-interest loan.
👉 Best for: Saving money over time and becoming debt-free faster.
2️⃣ Debt Snowball Method – Get Motivated with Quick Wins
Focus on paying off the smallest loan first, regardless of interest rate.
Once that’s paid, roll over the payment to the next-smallest debt.
👉 Best for: Building motivation and confidence with fast results.
3️⃣ Debt Consolidation – Simplify & Lower Monthly Payments
Combine multiple debts into one loan with a lower interest rate.
Easier to manage with one EMI, often at a lower cost.
👉 Best for: Reducing stress and avoiding missed payments.

The Debt Snowball Method is popular for its motivational benefits, but it comes with a few important drawbacks you should consider before choosing it:
1️⃣ Ignores Interest Rates
The snowball method focuses on the smallest balance first, not the highest interest rate.
This may lead to paying more interest over time compared to the Debt Avalanche method.
2️⃣ Can Be More Expensive
Since high-interest debts remain unpaid longer, you could end up spending thousands more in interest, especially with credit card debt.
3️⃣ Slower Overall Debt Payoff
While you’ll see quick wins early on, the overall timeline to become debt-free may be longer, especially if your smallest debts don’t carry much weight.
4️⃣ May Not Be Ideal for Large Debt Loads
If your debt includes large, high-interest loans, this method can be inefficient.
You might feel like you’re making progress, but the real financial impact is delayed.

The Debt Snowball Method is a simple and motivating strategy to pay off your debts. It focuses on building momentum by clearing smaller balances first. Here are the 4 key steps to follow:
1️⃣ List All Your Debts from Smallest to Largest
Ignore interest rates for now.
Focus purely on the outstanding balance — from the smallest to the largest.
2️⃣ Make Minimum Payments on All Debts
Continue paying the minimum due on every loan or credit card.
This keeps your accounts in good standing while you focus on one target debt.
3️⃣ Put Extra Money Toward the Smallest Debt
Use any extra income (bonus, side hustle, or savings) to attack the smallest debt first.
This gives a quick win, boosting your motivation.
4️⃣ Repeat the Process with the Next Smallest Debt
Once the smallest debt is paid off, roll its payment into the next smallest.
Like a snowball, your repayment power grows as each debt is cleared.
The debt snowball method gives you quick emotional wins, making it easier to stay committed — especially if you’re feeling overwhelmed by multiple loans.

The biggest advantage of the debt snowball method is the psychological motivation it creates by helping you see quick wins.
Key Benefit: Builds Momentum Fast
With the debt snowball method, you pay off your smallest debt first, regardless of interest rate. This gives you a sense of achievement early on, which boosts your confidence and keeps you motivated to continue tackling bigger debts.
As you pay off each loan, you free up more money to attack the next debt — just like a snowball rolling downhill and getting bigger.