If you’re carrying multiple debts — credit cards, loans, buy now pay later — choosing the right repayment strategy can save you hundreds or even thousands of pounds in interest, and get you debt-free months sooner.
The two main strategies
There are two popular approaches to clearing multiple debts: the snowball method and the avalanche method. Both involve making minimum payments on all debts, then throwing every spare pound at one target debt at a time.
The snowball method
Pay off your smallest debt first, regardless of interest rate. Once it’s gone, roll that payment into the next smallest. The snowball builds momentum — each cleared debt frees up more cash for the next one, and the psychological wins keep you motivated.
Best for: people who need early wins to stay motivated.
The avalanche method
Pay off your highest-interest debt first, regardless of balance. This is mathematically optimal — you minimise the total interest you pay over time. It takes longer to see the first debt cleared, but you’ll be debt-free sooner and pay less overall.
Best for: people who are disciplined and want to minimise cost.
Which should you choose?
The best method is the one you’ll actually stick to. If you have one high-interest debt that dwarfs everything else, the avalanche is clearly right. If you have several small debts and one large one, starting with the snowball to clear the small ones can build the habit and free up cash faster.
Before you start: consolidation
If you have high-interest credit card debt, it’s worth checking whether a 0% balance transfer card could save you money. Moving debt to a 0% card means every payment reduces the balance rather than the interest. Check your eligibility before applying — hard searches affect your credit score.
This article is for informational purposes only. If you’re struggling with debt, free help is available from organisations including StepChange and Citizens Advice.