For many households, debt is more than just a financial obligation—it’s a source of daily stress. From student loans to credit cards, the average European household carries over € 20,000 in personal debt, while in the U.S., the number is closer to $ 101,000, according to Experian’s 2023 consumer debt report. Tackling that weight requires a plan, and two of the most popular repayment strategies—the Debt Snowball and the Valanga di debiti—offer very different approaches. But which one actually works better?
How the Debt Snowball Works
The Debt Snowball method is about building momentum. You start by listing all your debts from the smallest balance to the largest, regardless of interest rate. You pay minimums on all debts but put extra money toward the smallest one first. Once it’s paid off, you roll that payment into the next smallest, and so on—like a snowball rolling downhill.
The advantage? Psychology. According to a 2016 study published in the Journal of Consumer Research, people who used the snowball method were more likely to stick to their repayment plans, because the early wins of eliminating small debts created motivation. If you’ve ever crossed something off a to-do list and felt a little rush of satisfaction, you understand the power here.
How the Debt Avalanche Works
The Debt Avalanche takes a more mathematical approach. Instead of focusing on balances, you target the highest-interest debt first—usually credit cards with rates above 18%—while paying minimums on the rest. Over time, this method minimizes the total amount of interest you pay.
For example, imagine you have three debts: € 500 at 20% interest, € 2,000 at 15%, and € 5,000 at 7%. With the avalanche method, you’d focus on the € 500 card first, because its interest is the most punishing. A NerdWallet analysis found that this strategy can save consumers hundreds to thousands of euros in interest payments, especially for those with large or high-interest debts.
Head vs. Heart: Which One Works Better?
The honest answer depends on you. If you’re motivated by seeing quick progress and need that sense of accomplishment to stay disciplined, the Snowball method might be your best bet. On the other hand, if you’re numbers-driven and committed to long-term efficiency, the Avalanche can save you significantly more money.
Behavioral economists point out that money decisions are rarely just about math—they’re about habits and emotions. That’s why nearly two-thirds of people who start with the Avalanche switch to the Snowball at some point: they want to feel the progress, not just see the numbers.
Choosing the Strategy That Fits Your Life
There’s no universal “best” option—it’s about aligning your debt repayment with your personality and lifestyle. Some even combine the two methods: start with a Snowball to build confidence, then switch to Avalanche once the momentum is rolling.
What matters most is not the exact strategy but the commitment to stick with one consistently. Debt repayment is a marathon, not a sprint. Whether you prefer the quick wins of the Snowball or the interest savings of the Avalanche, the finish line—the moment you’re debt-free—is worth every step.
Building Momentum Toward Freedom
Debt is never just about numbers—it’s about peace of mind. The best strategy is the one you’ll follow long enough to reach your goal. By choosing an approach that suits your personality, you can turn repayment from an overwhelming burden into a structured, empowering process. In the end, becoming debt-free isn’t only about saving money—it’s about regaining control of your financial future.
