How to Pay Off Debt Fast: The Snowball vs. Avalanche Methods

 Hey there! So you have some debt weighing down on you, huh? Trust me, you’re not alone. Most of us have been there — credit card bills, student loans, car payments, whatever. It can seem like a vicious cycle that never ends, but here’s the good news: There are techniques to face it down and clear it from your life faster than you realize. Today I want to talk about two of the most popular options for getting out of debt — the Snowball Method and the Avalanche Method. Grab a snack and let’s jump in.

What Is the Snowball Method?

Ok, here’s the scenario you have a bunch of debts and their balances vary. The Snowball Method is really just about paying off the smallest balance first, no matter the interest rate. Why? Because paying off that first little debt is so satisfying—like a mini milestone that motivates you to keep going.

Here’s how it works:

Lay out all your debt from smallest to largest.

Pay the minimum on all your debts except the smallest one.

Put every spare dollar you can find on that smallest debt.

After you pay it off, take the amount that you were allocating toward it and apply it to the next smallest debt.

Repeat until you’re out of debt.

It’s similar to getting a snowball rolling. It begins small, but when you push it along it gathers speed and increases. Before long, you’re rolling, crushing debts one by one.

I have a friend named Sarah, and let me tell you about her. She had five credit cards with balances from $500 to $5,000. She began with the Snowball Method, which knocks out the $500 card first. When she settled it, she was so jacked that she kept rolling, paying off the $1,200 card next. Within two years, she was debt-free. And believe me, her smile was worth a million.

What About The Avalanche Method?

You will notice that the Avalanche Method is slightly different. Instead of attacking the debt with the smallest balance, you attack the one that charges you the most interest first. Makes sense, right? That means paying more money over the long term, so addressing these first can save you lots in the long run.

Here’s the plan:

Organize your debts in order of highest to lowest interest rate.

Only make minimum payments on all your accounts except for the account with the highest interest rate.

Burn any spare cash you have on that high-interest debt until it’s zero.

Go to the next highest interest rate debt and repeat.

The Avalanche Method is efficiency and money saving. Yes, it will take a little longer to achieve that initial “victory,” but in the long run, you will pay less.

Let me give you an example. My cousin Mike had a $3,000 credit card balance at 20% interest and a $10,000 auto loan at 6% interest. The credit card was the first target, using the Avalanche Method. It eventually took him about a year to pay off, but he saved hundreds of dollars in interest versus the route of simply paying off everything evenly.

Which Method Is Best for Your Person?

The thing is: both approaches work. The best one for you depends on your own personality and finances.

If you’re someone who loves a quick win to stay motivated, then the Snowball Method is probably your jam. There’s such a sense of satisfaction of knocking a debt off your list — even a small one. Those small wins can keep you motivated.

But if you’re a numbers person with a frugality switch, then the Avalanche Method may be more up your alley. It’s all about paying the least in interest, which makes perfect sense if you’re carrying high-interest debt.

Success Tips (Regardless of Which Approach You Take)

Budget: If you want to uncover extra cash that can be used to pay down your debt, you have to know where your money is going. Re-evaluate how much you spend and where you can trim. Those morning lattes might be tasty, but passing on them could net you $100 a month — $1,200 a year!

Look for Side Hustles: Do you have a skill or hobby you can turn into a money-making gig? Whether it’s launching freelancer management apps, getting rid of stuff on eBay, or finding a weekend job, every bit counts.

Be Consistent: Paying off debt is a marathon, not a sprint. If progress seems slow at first, that’s okay. Just keep chipping away at it."

Celebrating Milestones: When you pay off your first debt or reach the halfway point, it’s time to celebrate. Indulge with a small reward, such as a nice dinner or a movie night. You’ve earned it.

A Quick Pep Talk

I’m sorry to be such a downer, but freeing yourself from a mountain of debt is daunting. You can easily see that large number and think to yourself, “I’ll never be able to do this.” But you can. And I’ve watched countless people get their finances together, and you can do it. All it requires is a plan, some discipline, and a lifestyle mindset that believes you deserve to live a life not shackled by debt.

So, what do you say? Is it time for you to confront your debt? Whether you are team Snowball or team Avalanche, the key is to begin. The first step of that journey starts today, and your future self will thank you for it. You’ve got this!

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