Real UK Debt Example: Snowball vs Avalanche vs Hybrid
Reading definitions is one thing. Seeing strategies work on actual numbers is another.
This guide uses a realistic UK example — the same one you can load in the DebtRiot calculator — to show exactly how Snowball, Avalanche, and Hybrid perform side-by-side.
Same debts. Same budget. Different strategies. Real results.
This is information only, not regulated debt advice.
The Example: The Smiths
Monthly Budget
Take-home income: £3,200
Essentials & bills: £2,400
Emergency buffer: £100
Debt budget: £700/month
The Debts (£14,400 total)
Example: your debts in one place
Start by listing each debt with its balance, rate, type and minimum payment.
| Debt | Balance | Rate | Type | Minimum |
|---|---|---|---|---|
| Nationwide Overdraft | £750 | 39.9% | EAR | £50 |
| Argos Card | £850 | 29.9% | APR | £27 |
| Sainsbury's Card | £2,100 | 21.9% | APR | £63 |
| Barclaycard | £4,200 | 23.9% | APR | £126 |
| Car Finance | £6,500 | 9.9% | APR | £180 |
Total minimum payments: £446/month Extra for strategy: £254/month
This is realistic UK debt — a mix of overdraft, credit cards, store card, and car finance. Let's see what each strategy does with it.
Strategy 1: Snowball (Smallest Balance First)
Order of attack:
Nationwide Overdraft — £750
Argos Card — £850
Sainsbury's Card — £2,100
Barclaycard — £4,200
Car Finance — £6,500
Results:
Debt-free in: 23 months
Total interest: £2,202
First debt cleared: Month 3 (Overdraft)
Second debt cleared: Month 6 (Argos)
How it feels:
Quick wins come fast. The overdraft disappears in 3 months, Argos by month 6. That's two debts gone before you've even hit half a year. Momentum builds.
But you're paying the 9.9% car finance minimum (£180/month) for nearly 2 years before really attacking it, while the 39.9% overdraft was only £750. Mathematically, not ideal — but psychologically, those early wins matter.
Strategy 2: Avalanche (Highest Interest First)
Order of attack:
Nationwide Overdraft — 39.9% EAR
Argos Card — 29.9% APR
Barclaycard — 23.9% APR
Sainsbury's Card — 21.9% APR
Car Finance — 9.9% APR
Results:
Debt-free in: 23 months
Total interest: £2,202
First debt cleared: Month 3 (Overdraft)
Second debt cleared: Month 6 (Argos)
Wait — same results as Snowball?
Yes. On THIS particular set of debts, Snowball and Avalanche produce identical results.
Why? Because the smallest debts (Overdraft and Argos) are also the highest-rate debts. The order ends up the same.
This happens more often than people expect. It's why you should test your actual numbers rather than assuming one strategy always wins.
Strategy 3: Hybrid S→A (Snowball then Avalanche)
How it works:
Clear 2 smallest debts first (Snowball)
Then switch to highest interest (Avalanche)
Order of attack:
Nationwide Overdraft — £750 (Snowball)
Argos Card — £850 (Snowball)
Barclaycard — 23.9% (Avalanche)
Sainsbury's Card — 21.9% (Avalanche)
Car Finance — 9.9% (Avalanche)
Results:
Debt-free in: 23 months
Total interest: £2,202
Again, same result. On this example, all three strategies converge because the debt profile happens to align.
What This Example Actually Shows
You might be thinking: "So it doesn't matter which strategy I pick?"
Not exactly. On THIS particular mix of debts, the strategies happen to produce the same order. But change the numbers slightly and the gap can be significant.
Try this variation:
Move the overdraft limit higher (£750 balance on a £2,000 limit — less urgent)
Add a £500 store card at 34.9% APR
Now Avalanche might beat Snowball by several months and hundreds of pounds.
The lesson isn't "all strategies are equal." The lesson is:
You don't know which strategy wins until you test YOUR numbers.
Cash Flow Index: A Different Lens
What if the Smiths cared more about monthly breathing room than total interest?
Cash Flow Index calculation:
Cash Flow Index (CFI) on the same debts
CFI = Balance ÷ Minimum. Lower CFI frees up monthly cash sooner; higher CFI usually comes later in the plan.
| Debt | Balance | Minimum | CFI |
|---|---|---|---|
| Nationwide Overdraft First | £750 | £50 | 15 |
| Argos Card | £850 | £27 | 31 |
| Sainsbury's Card | £2,100 | £63 | 33 |
| Barclaycard | £4,200 | £126 | 33 |
| Car Finance Last | £6,500 | £180 | 36 |
Here, the overdraft has the lowest CFI (15), so clearing it first unlocks the most breathing room per £1 repaid. Car finance has the highest CFI, so it usually sits near the end of the payoff order.
CFI order targets the overdraft first (same as Snowball/Avalanche here), but if the numbers were different, CFI might prioritise differently — focusing on freeing up cash flow rather than balances or rates.
Try It Yourself
The Smiths example is built into DebtRiot. You can:
Go to the calculator
Click "Load Example" to see these exact numbers
Hit Compare Strategies to see the results
Then clear the data and enter your own situation
When strategies tie (like here), DebtRiot shows you — so you can pick based on what feels right rather than stressing about optimisation.
Load the example and compare →
Key Takeaways
Snowball, Avalanche, and Hybrid can produce identical results if your smallest debts are also your highest-rate debts
Don't assume one strategy always wins — it depends entirely on your specific mix of balances, rates, and minimums
Test your actual numbers rather than following generic advice
When strategies tie, pick by preference — quick wins (Snowball), pure maths (Avalanche), or cash flow (CFI)
