Both are structured debt repayment strategies. The difference is the order in which you pay off debts.
Pay debts from smallest balance to largest. Pay minimum payments on all, throw extra money at the smallest. When cleared, roll the payment to the next. Advantage: quick wins maintain motivation. Disadvantage: may pay more interest overall.
Pay debts from highest interest rate to lowest. Mathematically cheaper — you pay less total interest. Advantage: optimal if you can maintain motivation. Disadvantage: the highest-interest debt may have a large balance, so it takes longer to clear any debt.
If you struggle with motivation and need wins to keep going: snowball. If you are highly disciplined and motivated by the numbers: avalanche. Research suggests snowball works better for most people in practice. Use our free debt snowball tracker to start today.