Debt Snowball vs. Debt Volcano
Which One Explodes Your Debt Faster?
If you’ve ever felt buried under debt, you’re not alone — and you're not without tools. Two popular and very different ways to pay off debt are the Debt Snowball and what I like to call the Debt Volcano.
Let’s break them down:
❄️ What Is the Debt Snowball?
The Debt Snowball Method, made famous by Dave Ramsey, focuses on small wins first. Which I myself have used in my own finances and a way out of my own debt.
🔹 How It Works:
List your debts from smallest to largest balance.
Make minimum payments on all debts.
Put any extra money toward the smallest debt.
Once it’s paid off, roll that payment into the next-smallest debt.
Repeat — like a snowball rolling downhill, getting bigger with each payoff.
✅ Best For:
People who need quick wins to stay motivated.
Those who feel overwhelmed and need emotional momentum.
🌋 What Is the Debt Volcano?
The Debt Volcano isn’t a formal method — it’s what happens when your debt is unmanaged, unpredictable, and ready to erupt 💥.
🔥 How It Works Unintentionally:
You pay whatever you can, whenever you can.
Pay off the one you can’t stand to look at anymore.
The one with the highest interest rate.
You only pay the minimum.
Debt piles up — rising balances, and credit damage.
✅ Best For:
Your own well being
💡 What You Should Do Instead
If you want structure and success, you need a proactive strategy — like the Debt Snowball or its cousin, the Debt Avalanche which targets high interest first.
However, when I paid off my debt, I used both methods. Without skipping payments, I had a David Bridle Credit Card. For my wedding dress but I was left at the alter. Every time I saw this bill, I was upset again. So I paid this off first, even though it was much higher then three other smaller debts.
The point is:
🚫 Don’t only do volcano, debit pile up.
✅ Create a plan that builds momentum and gets results.
🧭 Need Help Making a Strategy?
At Arctic Rose Financial Coaching, I’ll help you figure out the best debt payoff method based on your personality, income, and goals.
💬 Book a free Snapshot Call today at kyleeogden@arctic-rose.com
Let’s stop the eruptions — and build a plan that works.