Snowballr · Cheat sheet
Debt payoff cheat sheet
Snowball vs avalanche, when each wins, and the order of operations.
For: Anyone with multiple debts · Source: snowballr.io/cheat-sheets/debt-payoff
Snowball vs avalanche
| Method | Sort by | Best for | Trade-off |
|---|---|---|---|
| Snowball | Smallest balance first | Motivation, behavior | Slightly more interest |
| Avalanche | Highest interest first | Math optimum | Slower early wins |
When avalanche actually wins
- You have one debt with >20% APR — kill it first regardless of balance
- The interest gap between debts is >10 pts
- You are disciplined and will not quit halfway
When snowball actually wins
- You have 5+ small debts and feel overwhelmed
- You have given up before — momentum matters more than math
- The interest gap between debts is <5 pts (savings are negligible)
Order of operations (before extra payments)
- 1. Capture any 401(k) employer match (free 50–100% return)
- 2. Build $1K starter emergency fund
- 3. Kill any APR >10% (snowball or avalanche)
- 4. Build 3–6 month full emergency fund
- 5. Pay 5–10% APR debt down while investing in parallel
Decision rules
- Always pay minimums on all debts. Apply extras only to one.
- Refinance any APR >20% if your credit qualifies — cuts payoff time.
- Never use HELOC to pay credit-card debt unless behavior is fixed.
- 0% balance-transfer cards work only if you pay off before promo ends.