debt consolidation Financial Wellbeing Understanding finance

Debt Clean-Up: Avalanche vs Snowball (and when to consolidate)

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There are two common ways to clear debt faster. Both are great, so pick the one you’ll actually stick to.

 

Avalanche (mathematically fastest)

Pay minimums on all debts; throw every extra dollar at the highest-interest-rate debt first. When it’s gone, roll that payment to the next highest. The bonus is that you may end up paying less total interest.

 

Snowball (motivation first)

Pay minimums on all debts, attack the smallest balance first to notch quick wins, then roll payments up the chain. Progress feels tangible as you close off debts, which can help some people stay motivated.

 

Which might work best for you?


better-finance-Bullet-Point

If you’re numbers-driven and steady → Avalanche.

 

better-finance-Bullet-Point

If you need early momentum → Snowball.

 

Either way, automate payments the day after payday and protect them from everyday spending.

When consolidation can help

A single personal loan may be worth considering if it helps you:

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Reduce interest cost

Lower your effective interest cost across the debts you’re consolidating.

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Get a fixed end date

Move to a clear, fixed end date so you know exactly when the loan will be repaid.

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Simplify to one repayment

Roll multiple debts into one repayment you can comfortably afford.

Trade-offs: there may be fees, and a longer term can mean more interest over time. Make sure the maths stacks up for your situation.

 

Check your borrowing power

Use the calculator to check potential scenarios. Then apply with us, and we’ll help you lock in the best loan.

 

Approval subject to responsible lending inquiries and affordability assessment. Normal lending criteria and fees apply. This is general information, not personalised financial advice.