The Fastest Way to Pay Off Debt: Why I Like the Snowball
August 1, 2026
Imagine reaching the end of the month and knowing that the money you used to send to credit cards and loans can finally stay with you. That feeling is why I think becoming debt-free is about more than choosing a repayment formula. You need a plan you can keep following until the last balance is gone.
My preference is the debt snowball: clear the smallest balance first, then roll that payment into the next debt. The debt avalanche, which targets the highest interest rate, is mathematically cheaper under comparable conditions. But I think the motivation from finishing individual accounts can be valuable enough to change what someone actually achieves.
In my video published on 1 August 2026, I explained the method, the spending and income changes that support it, and what I would do after the debt is cleared. This is a practical framework for manageable non-priority consumer debts, not a replacement for individual support if essential bills are already unaffordable.
You can also watch my debt repayment video on YouTube.
Deal with the urgent position first
Before choosing snowball or avalanche, I would establish whether the immediate bills and minimum payments are affordable. Rent or mortgage arrears, council tax and other priority commitments can have more serious consequences than an ordinary unsecured card balance.
A smallest-balance rule shouldn’t push those obligations aside. If you’re behind on essentials, unable to make minimum payments or facing enforcement, a standard overpayment plan may not be the right starting point. Getting the situation assessed is more useful than pretending a different ordering of the debts will solve a shortfall that doesn’t exist.
The government’s guide to dealing with debts sets out routes to help and debt advice. I would use appropriate free, independent support for an unaffordable debt situation rather than taking on a property investment or paying for a wealth-building service.
Once the urgent position is under control and there is a genuine monthly surplus, the choice of repayment method becomes much more useful. That is the situation I am addressing with the snowball approach.
Snowball versus avalanche
With the avalanche, you maintain the required payments on all debts and direct the extra money towards the one charging the highest interest rate. Once that is gone, you move to the next highest rate. If everything else is equal and you maintain the plan, this minimises interest cost.
The snowball orders the relevant debts by balance instead. You maintain the required payments elsewhere, focus the surplus on the smallest debt, clear it and then add its old payment to the next target. As accounts disappear, the amount available for the remaining ones grows.
The difference is psychological as well as financial. A large expensive balance can take a long time to clear, even when you’re making meaningful progress. A smaller account may disappear sooner, giving a visible result that makes the next month feel worthwhile.
I’m not saying interest rates stop mattering. If a small balance is at 0% and another is charging 35%, clearing the smaller one first can cost appreciably more. I would want that trade-off understood rather than hidden behind an attractive name for the method.
Why the small wins changed my view
I used to be more critical of the snowball. The arithmetic seemed obvious: pay the expensive debt first. What changed my view was recognising how much the outcome depends on continuing with the plan when the initial enthusiasm wears off.
In the video, I discussed research from Northwestern University’s Kellogg School of Management involving nearly 6,000 people in a debt-settlement programme. The researchers found an association between closing accounts and successful debt elimination, even when considering the amounts involved.
The study’s analysis described a start-small approach as associated with around a 14% greater likelihood of eliminating debt after a year, rising to 43% after four years. That was a finding in that particular setting, not proof that every person will get those results or that the snowball always beats the avalanche.
For me, the useful insight is that completion can create momentum. A method that someone maintains may produce a better real outcome than a mathematically ideal plan they abandon. I would still compare the interest cost and choose deliberately.
I don’t put every kind of borrowing in the same category
I’m a property investor, and I use mortgages to own income-producing assets. I wouldn’t have built the same property portfolio without borrowing. That is why I don’t agree with the idea that all debt must be eliminated before any investment can make sense.
A manageable mortgage attached to a suitable property is different from repeatedly borrowing for things that fall in value and produce no income. The purpose, cost and affordability of the borrowing matter. Calling a loan “investment debt” doesn’t make it safe automatically.
I still need the rent and my reserves to support the mortgage. Values can fall, interest can rise and property can be empty. My preference for productive borrowing comes with responsibility for those risks, rather than an exemption from them.
The debt I am particularly keen to clear here is expensive consumer borrowing that keeps reducing the money available each month. It can allow a purchase today while leaving a future version of you paying for it long after the excitement has passed.
Keep a small emergency buffer
In the video, I suggested an initial buffer of roughly £1,000 to £2,000, depending on circumstances. The purpose is to stop an ordinary surprise, such as a car repair or broken appliance, sending you straight back to the credit card.
That is a starting example, not the right reserve for every household. It also doesn’t mean stopping essential payments while building it. The balance between a reserve and debt repayment depends on how secure your income is, what bills are approaching and how expensive the borrowing is.
Without any buffer, a repayment plan can repeatedly reverse direction. You make an overpayment, something breaks and then you borrow again. Having a modest amount available can help the progress stick.
Once expensive debt is cleared, I would revisit the reserve and build a more suitable longer-term cushion before committing everything to investments. The aim is to become financially stronger, not simply swap a zero card balance for a bank account with nothing available.
Start with the expenses that make a difference
People love blaming coffee, but a large car payment or an unaffordable housing cost can matter much more. I would look at the biggest recurring commitments first and ask whether they fit the goal of getting out of debt.
I’ve coached people who needed to change their vehicle to improve their finances. That isn’t an instruction to sell a financed car without checking the agreement, settlement balance and transport needs. It is a reason to investigate whether the current arrangement is consuming too much of the monthly income.
In the video I used £500 a month of surplus as a useful target for debts below £20,000, and nearer £1,000 for larger balances. Those are targets to illustrate the scale of progress, not minimum amounts below which trying is pointless.
A smaller sustainable surplus is still useful. What matters is making the budget honest. If an expense only occurs annually, I would allow for it monthly rather than pretending the money is available for debt repayment until the bill arrives.
Increasing income can shorten the process
There is a limit to how far spending can be reduced. Extra shifts, overtime, freelance work or a temporary weekend job may help create a larger surplus without cutting the essentials further. The right option depends on what is actually available to you.
I own a taxi business, and in the video I described the possibility of extra income from Friday and Saturday night work. I mentioned £1,000 to £1,500 a month as an example from that context. It isn’t a guaranteed take-home amount for a new driver: licensing, vehicle costs, tax, location and available work all affect the result.
The broader point is that a temporary change can have a lasting benefit if the extra money is directed at the debt. Earning more while spending all of the increase leaves the repayment plan in the same place.
I also recognise that not everybody can add hours. Disability, caring responsibilities or an already demanding work schedule can limit the options. The next step may instead involve checking support entitlements, speaking to creditors or finding work that fits around existing responsibilities.
Put the actual debts on one page
I would list each balance, interest rate, required monthly payment and payment date. I would also note any promotional rate ending soon, fees or restrictions relevant to overpayments. A debt feels harder to manage when the numbers remain vague.
Then choose the target account and the amount that can go towards it. If using the snowball, order the suitable debts from smallest to largest. Keep the required payments going elsewhere and send the surplus to the first target.
When an account is cleared, leave it visible in the record and mark it as complete. I like being able to see what has changed. The list becomes evidence of progress rather than just a collection of balances that still need attention.
The next month’s plan should include the payment that has now been freed up. If that money quietly disappears into everyday spending, the snowball never grows. Deliberately redirecting it is what gives the method its momentum.
Review the plan without abandoning it
A monthly review gives you a chance to update balances and check whether the budget is working. If you regularly need the card again before payday, the surplus may be overstated or an essential cost may have been missed.
It is also sensible to review changing interest rates and expiring offers. Choosing the snowball doesn’t require ignoring a major change in the price of the debt. I would rather adjust thoughtfully than treat the original ordering as a rule that can never be questioned.
Progress can be uneven. An emergency may mean making only the required payments for a month. That doesn’t erase the accounts already cleared. The important thing is to understand what happened and return to a workable plan when possible.
My preference remains the snowball because I value the momentum of finishing individual debts. But if someone understands the avalanche, can sustain it and wants to minimise interest, that is a perfectly coherent choice too.
Keep the habit when the last balance disappears
The final repayment is a turning point. I wouldn’t immediately replace it with another large monthly commitment. The discipline that cleared the debt can now help build savings and, when appropriate, investments.
Someone accustomed to directing a substantial amount each month towards repayments already has a powerful habit. Once the emergency reserve and immediate goals are covered, that same routine can begin accumulating assets instead of reducing liabilities.
My first £100,000 guide is a useful next read, and my explanation of passive income shows why I focus on ownership. If you are financially ready to explore property later, you can book a free property strategy call. For now, the goal is to make the debt smaller, the plan sustainable and each completed account a step towards having more choices.