Debt snowball or avalanche: which to use
With several debts, the order you clear them in changes both what you pay and whether you finish. The two standard methods optimise for different things, and the right one depends on which failure you are more likely to have.
The avalanche method targets the highest interest rate first while paying minimums on the rest. It is mathematically optimal and costs the least in total.
The snowball method targets the smallest balance first regardless of rate. It costs slightly more, and it produces a cleared debt early — which is why more people complete it.
In South Africa the two often coincide, because short-term loans are usually both the most expensive and the smallest. Where they coincide, the choice does not matter.
Where they differ, choose honestly. If you have abandoned repayment plans before, the snowball’s early win is worth the extra cost. If you will grind through either way, take the avalanche.
Whichever you choose, do not close facilities you are still repaying into and do not take new credit during it. The plan only works if the total is falling.
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Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.