The debt snowball method is a popular way to pay off debt.

It helps people build momentum by starting with the smallest balance first.

For many, that emotional boost makes all the difference.

But it’s not the only option, and it’s not always the most cost-effective.

If you’re looking for other smart ways to tackle debt, this post will walk you through five powerful alternatives.

Why Look Beyond the Debt Snowball?

The debt snowball method works by paying off your smallest debt first while making minimum payments on the rest.

Once that smallest balance is gone, you move to the next smallest, and so on—like a snowball gaining size and speed.

It’s a strategy built on quick wins, giving you a boost of motivation each time you eliminate a debt.

That emotional momentum can be powerful, especially if you’ve struggled with sticking to a plan in the past.

But while it helps build confidence, the snowball method doesn’t prioritize interest rates.

This means you could end up paying more in the long run, especially if high-interest debts are left for later.

That’s why it’s worth exploring other methods.

Different strategies focus on different strengths, like saving the most money, simplifying repayment, or aligning with your income flow.

The key is to match the method to your goals, budget, and personality.

Alternative #1: The Debt Avalanche Method

How It Works

With the debt avalanche method, you focus on paying off your highest-interest debt first, regardless of the balance.

You continue making minimum payments on all other debts.

Once the highest-interest debt is eliminated, you move to the next highest, and repeat the process until you’re debt-free.

Best For

This method works best for people who are motivated by saving money and want to reduce the overall cost of their debt.

If you’re driven by numbers and long-term results rather than short-term wins, the avalanche is a smart choice.

Pros

• Saves the most in interest over time
• Reduces total repayment time if followed consistently
• Focuses on financial efficiency and long-term savings

Cons

• Progress can feel slow, especially if the highest-interest debt also has a large balance
• Fewer emotional wins early on, which may make it harder to stay motivated for some people

Alternative #2: Debt Consolidation

How It Works

Debt consolidation combines multiple debts into a single new loan, ideally with a lower interest rate.

Instead of juggling several payments, you’ll make just one monthly payment.

This can be done through a personal loan, a balance transfer credit card, or a home equity loan, depending on your financial situation and credit score.

Types

• Personal Loan: Fixed interest rate and set repayment term.
• Balance Transfer Credit Card: 0% interest promotional period (typically 12–18 months), ideal for short-term payoff.
• Home Equity Loan or Line of Credit (HELOC): Uses your home as collateral to secure a lower rate.

Best For

People with good to excellent credit who want to simplify payments and potentially lower their interest costs.

It’s especially helpful for those feeling overwhelmed by multiple due dates or varying interest rates.

Pros

• One payment instead of many
• Lower interest rate, which may lead to savings
• Potentially lower monthly payment, easing budget strain

Cons

• May come with fees, such as balance transfer fees or loan origination fees
• Could extend your payoff timeline, meaning more interest in the long run
• Risk of racking up more debt if spending habits don’t change after consolidation

Alternative #3: Debt Management Plan (DMP)

How It Works

A Debt Management Plan (DMP) involves working with a nonprofit credit counseling agency that negotiates with your creditors on your behalf.

The goal is to secure lower interest rates, waive certain fees, and create a single monthly payment that fits your budget.

You make this payment to the agency, and they distribute it to your creditors.

The plan typically lasts 3 to 5 years and is designed to help you pay off unsecured debts like credit cards.

Best For

This option is best for people who are struggling with high-interest credit card debt and feel overwhelmed managing multiple accounts.

It’s also helpful for those who need structure and outside support to stay on track.

Pros

• Professional guidance and support from certified credit counselors
• Lower interest rates and fewer late fees
• One structured monthly payment, making repayment more manageable
• No new credit required, which can be helpful if your score is low

Cons

• Monthly fees may apply, depending on the agency
• Not all creditors may agree to the terms of the plan
• Access to new credit is often restricted during the plan
• Requires full commitment, as missing payments can void the agreement

Alternative #4: The Hybrid Method

How It Works

The hybrid method blends the emotional momentum of the debt snowball with the financial efficiency of the debt avalanche.

You start by paying off a small debt with a high interest rate, giving you a quick win while also saving on interest.

Once that’s paid off, you shift your focus to the rest of your debts in order of highest interest rate, like the avalanche method.

This approach offers the best of both worlds by combining motivation and smart financial strategy.

Best For

Ideal for people who want a custom approach that balances emotional rewards with interest savings.

If you’re looking for a method that keeps you motivated without sacrificing too much money to interest, this is a strong option.

Pros

• Flexible and adaptable to your specific situation
• Provides an early sense of accomplishment
• Still focuses on reducing interest costs over time
• Great for those who want a personalized plan

Cons

• Requires extra planning and organization
• It can be harder to manage without clear tracking tools
• Success depends on your ability to stay disciplined and adjust as needed

Alternative #5: Income-Driven or Budget-Focused Approach

How It Works

This method ties debt repayment to your budgeting style and income flow, rather than a fixed debt order.

You might commit a percentage of your monthly income, bonuses, or side hustle earnings directly toward debt.

For example, using a 60/20/20 budget, you could allocate 20% of your income to savings and debt payments.

Others might dedicate 50% of every windfall, like tax refunds or freelance income, to paying down balances.

The approach is highly adaptable and revolves around making debt payoff part of your broader financial lifestyle.

Best For

People who value flexibility and holistic financial planning.

It’s great for those with variable income or those who prefer to focus on long-term financial balance rather than strict repayment sequences.

Examples

• 60/20/20 Budget Rule: 60% to needs, 20% to savings/debt, 20% to wants
• Side Hustle Strategy: 100% of side income goes to debt until it’s gone
• Bonus/Refund Rule: Commit a set percentage (e.g., 50–75%) of any extra money toward debt

Pros

• Flexible and adaptable to changes in income or expenses
• Encourages better overall money management habits
• Works well alongside other budgeting goals like saving or investing

Cons

• Less structure, which can slow progress if not tracked carefully
• Requires strong discipline and budgeting skills
• Without a clear target, it’s easy to lose focus or redirect funds elsewhere

How to Choose the Right Method for You

Choosing the right debt payoff method starts with knowing yourself. Ask whether you’re driven more by emotional momentum or logical savings.

If small victories keep you going, the debt snowball or hybrid method may be a better fit.

If you prefer seeing the numbers work in your favor, the avalanche or income-driven approach might make more sense.

Next, think about your financial goals—do you need motivation to stay consistent, or are you aiming to save the most money possible in the long run?

Your current debt mix also matters. High-interest credit card debt may benefit from a more aggressive strategy, like the avalanche or a consolidation loan.

Lastly, factor in your income stability, spending habits, and how disciplined you are with money.

A flexible method can be great for variable income, but only if you’re consistent in following through.

The right method isn’t the “perfect” one—it’s the one you’ll stick with until the debt is gone.

Final Words

There’s no one-size-fits-all way to pay off debt.

What works for one person may not work for another.

Choose a method that fits your goals, habits, and mindset.

Stay consistent. Stay motivated.

The best method is the one you’ll actually follow through with!

FAQs

Can I switch from the debt snowball to another method later?

Yes. You can switch strategies at any time.

The key is staying flexible and choosing the method that keeps you moving forward.

Will consolidating debt hurt my credit score?

It might cause a small dip at first due to a hard credit check, but over time, consolidation can help your score if you make on-time payments and reduce your credit utilization.

Is the avalanche method always better financially?

From a numbers perspective, yes, it usually saves more in interest.

But it’s not always the best emotionally, especially if you need small wins to stay motivated.

What if I can’t make consistent extra payments?

Focus on paying at least the minimums and build a budget that works.

Even small extra payments help. When your income improves, you can increase your efforts.

Are debt relief programs a good alternative?

They can be, but they’re not for everyone.

Research carefully, understand the risks, and consider talking to a nonprofit credit counselor before committing.