Real UK Example: Snowball vs Avalanche - and Where Hybrid Fits

6 Sept

Here’s a simplified UK example showing how strategy choice affects time and interest. Then we’ll explain when a Hybrid or Custom approach may be smarter - and how to test all four strategies with your own numbers.

The Finances

Income £3,600/month. Essentials £2,800. Debt budget: £800. Debts:

Credit Card — £5,500 at 24.9% APR
Loan 1 (Car) — £7,200 at 9.9% APR
Loan 2 (Personal) — £4,000 at 15.9% APR
Family Loan — £3,000 at 0% APR

Snowball result

Snowball focuses on paying off the smallest balance first, while keeping up minimums on everything else.

First target the Family Loan: £3,000
Next: Loan 2: £4,000
Then the Credit Card: £5,500
Finally Loan 1: £7,200

Clears smaller balances first. Debt-free in about 2 years 7 months; total interest ~£4,600.

Avalanche result

Avalanche instead tackles the highest interest rate first.

First target the Credit Card: 24.9%
Then Loan 2 : 15.9%
Next Loan 1: 9.9%
Last the Family Loan: 0%

Targets the highest APR first. Debt-free roughly 2 months earlier than Snowball and saves about £1,400 interest.

Where Hybrid could help

If early wins keep you on track but you still want interest savings, you can start Snowball and auto-switch to Avalanche after N cleared debts. In mixed portfolios (tiny balances + one very high APR), Hybrid often lands between Snowball and Avalanche for both time and interest. (Results vary - test it with your numbers.)

When to use Custom

Custom order is helpful for overdrafts (EAR), promotional rates that expire, or personal priorities (e.g., clearing a joint debt first). You decide the exact sequence.

Test your own numbers (free)

Enter your details once and compare Snowball, Avalanche, Hybrid and Custom side-by-side. See months to go, debt-free date, estimated interest and milestone list instantly.

Try the free comparator

Turn your preview into a plan

Generate a personalised PDF with exact monthly payments per debt, payoff order & milestones, calendars and an optional What-If extra.

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Important information

DebtRiot is a self-guided tool, not financial advice. If you can’t meet essentials, consider free, regulated UK help (e.g., StepChange or National Debtline).