Staring at three, four, five different balances and not knowing where to start is its own special kind of paralysis. You have limited extra money each month, multiple debts pulling at it, and no clear sense of which one deserves your attention first. Here's the actual framework, and how to choose between the two competing methods.
Two Methods, Two Different Strengths
| Method | How It Works | Best For |
|---|---|---|
| Avalanche | Pay minimums on everything, throw extra at the highest-interest debt first | Saving the most money in interest overall |
| Snowball | Pay minimums on everything, throw extra at the smallest balance first | Building momentum and motivation through visible wins |
Mathematically, avalanche wins every time — it minimizes total interest paid. But personal finance is not purely mathematical. If snowball's quick wins are what keep you actually sticking with the plan for the next 18 months, snowball that saves you less interest but that you actually finish beats an avalanche method you abandon in month three.
The Divorce-Specific Twist: Priority Debts
Before either method, some debts jump the line regardless of interest rate or balance size, because the consequences of missing them are more severe than money alone:
- Anything with your home attached — a missed mortgage payment risks the roof over your kids' heads
- Anything court-ordered — child support and alimony arrears carry legal consequences interest-rate math doesn't capture
- Anything with a security deposit or repossession risk — car loans, if losing the car threatens your ability to work
Handle these first, regardless of what avalanche or snowball would technically recommend. Then apply either method to what's left.
A Simple 3-Step Process
- Step 1: List every debt with balance, minimum payment, and interest rate
- Step 2: Handle priority debts (above) first, no matter what
- Step 3: Choose avalanche or snowball for the rest, based on whether you need the math or the momentum more right now
You Don't Have to Choose Perfectly
Either method beats no method. The paralysis of trying to pick the "correct" one is often more costly than any interest-rate difference between them. Pick one, start this month, and adjust later if it's not working. Progress beats perfection here, every time.
Related reading: The 4 Numbers Every Divorced Mom Needs to Know and Untangling Joint Debt: Protecting Your Credit From Your Ex.
Pick one. Start this month. Step lively, Sis. 💚
— Jennifer