What changes between the two methods
After accounting for required payments, avalanche directs the available extra amount towards the debt with the highest rate. Snowball directs it towards the smallest balance. As a debt is repaid, the available budget can move to the remaining debts.
CFPB describes both approaches. Under comparable assumptions, attacking higher rates is intended to reduce interest; clearing a smaller balance sooner can make progress easier to notice. Neither is a promise about the behaviour of a particular credit agreement.
Compare like with like
In DebtZero, enter the balances and terms once, then compare the strategies using one budget, for example CA$350 per month. That amount is an illustration, not a recommended budget. Look at the interest estimate and repayment timeline together.
Change one assumption at a time. If you change the budget and method simultaneously, you cannot tell which change explains the difference. Preview an extra CA$100 separately and save it only if you actually want that scenario in your plan.
When the ranking is not enough
Consequences of missed payments, essential household costs, secured borrowing and contractual conditions can matter more than a mathematical ranking. DebtZero does not assess legal priority or negotiate with creditors.
If payments are already unaffordable, start with an overview of essential spending and seek suitable local help. A lower interest forecast does not make an unaffordable monthly amount workable. Revisit your chosen method when your real situation changes.
Sources and further reading
Sources checked on 24 September 2026.
An educational planning tool, not personalized financial, legal or debt advice. Estimates use your inputs and simplified monthly assumptions. Your lender’s statements and agreement remain the reference.