Choose Avalanche or Snowball
Avalanche (highest interest first) saves the most money; snowball (smallest balance first) gives early wins that sustain motivation. The better method is the one a person will actually stick with to the end.
In this lesson
Choose Avalanche or Snowball is part of Building a Debt Repayment Strategy. This preview shows how debt-strategy connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Dayo reads about two debt repayment methods: the avalanche (highest interest first) and the snowball (smallest balance first). He owes money on five accounts.
How it works
The avalanche method prioritises the highest-interest debt for extra payments — mathematically optimal. The snowball method prioritises the smallest balance — psychologically motivating. Both are superior to no strategy. For someone who needs the motivational boost of an early win to sustain the repayment effort, the snowball method's quick victories may be worth the small mathematical cost compared to avalanche.
Apply it to a real decision
Real-life money moment: Dayo owes money on five accounts. His largest debt is the most expensive by interest — but paying it down slowly means no accounts will be fully cleared for months. The snowball approach clears his two smallest debts within two months, giving him a visible sense of progress. He stays committed. The avalanche approach would have saved more interest — but he might have given up before seeing any results.
Activity preview
Try one real money action
Open Tasks and submit proof for one task, or open Requests and make a deposit request. Parent approval can happen later.
Quiz preview
Avalanche versus snowball debt repayment strategies differ because:
The avalanche method saves the most money overall because: