The fastest way to clear multiple debts
When you owe on several cards and loans, the order you pay them off changes how much interest you pay and how motivated you stay. This guide explains the snowball and avalanche methods and how to build a plan that works.
Minimums everywhere, extra on one
The core of any payoff plan is simple: pay the minimum on every debt to stay current, then throw every spare pound at one target debt. When that debt clears, its old payment rolls onto the next target — a snowballing effect that accelerates as you go. The only question is which debt to target first, and that's where the two methods differ.
The avalanche (cheapest)
The avalanche method targets the debt with the highest APR first, regardless of balance. Mathematically this is the cheapest route — you kill your most expensive interest first, so you pay the least overall and usually clear everything fastest. If you're disciplined and motivated by saving money, avalanche wins.
The snowball (most motivating)
The snowball method targets the smallest balance first. You clear individual debts quickly, which delivers early wins and momentum — behavioural research suggests many people stick with it better. It can cost a little more interest than avalanche, but the best plan is the one you actually finish. If you've struggled to stay motivated, snowball may be the smarter choice.
A hybrid works too
Finding extra to pay
Even a small extra payment dramatically shortens the timeline. Free up cash by cutting subscriptions, switching to 0% balance transfers on expensive cards (so payments clear the balance, not interest), and putting any windfalls straight onto the target debt. Avoid taking on new debt while you repay — and if your debts are unaffordable, get free advice from StepChange, National Debtline or Citizens Advice.
Common mistakes
- Spreading extra across all debts. Focus all spare cash on one target; minimums on the rest. Spreading it slows everything.
- Missing a minimum payment. Fees and credit-score damage outweigh any gain. Always cover every minimum.
- Choosing a method you won't stick to. Avalanche is cheapest, but a snowball you finish beats an avalanche you quit.
- Taking on new debt mid-plan. New borrowing resets your progress. Pause new credit until you're clear.