The debt snowball and debt avalanche are the two best-known strategies for paying off multiple debts. Both involve paying the minimum on all your debts while putting every spare pound toward one target debt — they differ only in which debt you target first.
You target the debt with the smallest balance first (regardless of interest rate), clear it, then roll that payment onto the next-smallest, and so on. The 'snowball' grows as freed-up payments stack up. Its strength is motivation: clearing whole debts quickly gives satisfying early wins that keep you going.
You target the debt with the highest interest rate first, then the next-highest, and so on. This minimises the total interest you pay, making it the cheapest and often fastest route mathematically — though the first debt may take a while to clear, so the early wins are less immediate.
Avalanche saves the most money; snowball keeps many people motivated. The best method is the one you'll actually stick with. Our free debt payoff plan works for either. If you're struggling with debt, free UK help is available from StepChange (0800 138 1111) and National Debtline (0808 808 4000) — see our getting out of debt guide. This is general information, not financial advice.