The snowball: smallest balance first
You attack the smallest debt regardless of interest rate. It clears quickly, the account closes, and that freed-up payment rolls onto the next smallest. The wins come early and often.
- Fits you if: you've started plans before and quit when nothing seemed to move
- The trade-off: you usually pay somewhat more interest overall
The avalanche: highest interest rate first
You attack the most expensive debt — usually a credit card or overdraft — while paying minimums on the rest. Mathematically this costs the least and finishes soonest.
- Fits you if: you're motivated by saving money and can stay steady without quick wins
- The trade-off: if your highest-rate debt is large, progress can feel invisible for months
How to choose in two minutes
Sort your debts both ways — once by balance, once by rate. If the first target is the same debt under both orders, the decision is made for you. If they differ, ask one honest question: when plans have failed for me before, was it because of maths or motivation? Maths problems suit the avalanche. Motivation problems suit the snowball.
You're allowed to switch
Starting with a snowball win and switching to the avalanche afterwards is not cheating — it's a common and sensible hybrid. The only real failure is paying a bit extra everywhere and finishing nothing.
One step for this week
Write your debts down and number them in your chosen order. Money Reset compares both orders with the numbers you enter and keeps your chosen target in front of you, so the decision only has to be made once.