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I have several debts — should I pay off the smallest first or the highest-interest one first?

List your debts and your monthly budget, and compare two payoff orders side by side — snowball (smallest balance first) and avalanche (highest interest rate first).

Two valid orders — compared side by side
Snowball pays off your smallest debt first for quick wins that can help you stay motivated. Avalanche pays off your highest-interest debt first, which usually costs the least overall. Enter your own numbers below to see exactly what each order means for you.

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Your Debts

2 debts

We've pre-filled two example debts so you can see how it works — replace them with your own.

Many South African credit agreements carry a monthly service fee, capped by the National Credit Act at R60. Leave it at R0 if you're not sure — it only changes the numbers if you fill it in.


R

For your numbers, both orders cost about the same in total interest and take the same time.

Snowball — Smallest Balance First

Quick wins first — can help you stay motivated

Debt-free in

1 year 8 months

Total interest paid

R 5 797,69

Payoff order

  1. Store Account (example) — month 9
  2. Credit Card (example) — month 20

Avalanche — Highest Interest First

Lowest total interest — usually costs the least overall

Debt-free in

1 year 8 months

Total interest paid

R 5 797,69

Payoff order

  1. Store Account (example) — month 9
  2. Credit Card (example) — month 20

How the maths works

Every month, each debt you still owe accrues interest on its current balance. Your budget first covers every debt's minimum payment, and whatever is left over ("extra") all goes to one target debt — the smallest balance for snowball, or the highest rate for avalanche.

When a debt is fully paid off, two things happen: its minimum payment is freed up and added to next month's extra (the classic "snowball" rollover effect — both strategies use it, only the order differs), and if there was money left over in the same month it closed, that leftover goes straight to the next debt in the order rather than waiting for next month.

Because avalanche always attacks the most expensive debt first, it can never cost more total interest than snowball for the same debts and budget — though the two orders can take a different number of months depending on your numbers.

Frequently asked questions

This is an estimate only, not financial or tax advice, and we are not a financial services provider (FSP). Your actual figures depend on your lender or provider, and your personal circumstances. It estimates a payoff schedule from the numbers you enter — your actual rates, fees, and terms depend on your credit agreements. If you're struggling to keep up with payments, consider speaking to a registered debt counsellor or your credit provider directly.