Paying debt down: avalanche and snowball

There are two credible ways to clear multiple debts, and the difference between them is smaller than the difference between doing one and doing neither.

The setup, whichever method you pick

List every debt: balance, interest rate, minimum payment. Pay the minimum on all of them, always. Then direct every spare pound at one target debt until it is gone.

Avalanche: cheapest

Target the highest interest rate first, regardless of balance. This costs the least in total interest and clears everything fastest in pure maths terms. Choose it if you are motivated by numbers and can wait for the first win.

Snowball: most likely to be finished

Target the smallest balance first. You clear an account quickly, which is a real and useful psychological win, and the method has good evidence behind it for follow-through. Choose it if past attempts have stalled.

The rolling payment

This is the engine of both methods. When a debt clears, do not absorb its payment back into spending - roll it onto the next debt. Your total monthly outgoing stays flat while the amount attacking the balance grows every time an account closes.

Consolidation: sometimes, carefully

Consolidation helps only if the new rate is genuinely lower including fees, you cut up or close the old cards, and you do not extend the term so far that total interest rises. Consolidating unsecured debt into secured debt against your home should be a last resort, not a convenience.

Protect the plan

Keep a small buffer - even a few hundred - while repaying. Without it, the first unexpected cost goes straight back on a card and undoes months of work.