Episode 84 - How to Pay Off Debt Fast: The Debt Snowball vs. Avalanche Method
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Episode 84 - How to Pay Off Debt Fast: The Debt Snowball vs. Avalanche Method
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About this listen
Summary:
In this episode, I break down two popular methods to pay off debt fast: the Debt Snowball and the Debt Avalanche. The Snowball Method focuses on paying off the smallest balances first, giving you quick wins and a sense of momentum. It’s simple, motivating, and easy to stick with—even if it means paying a bit more in interest.
The Avalanche Method, on the other hand, targets debts with the highest interest rates first. It saves more money in the long run and helps you become debt-free faster overall. But it can feel slower at the beginning, which makes it harder to stay motivated.
I explain that your choice depends on your personality. If you thrive on small victories, the Snowball might be your path. If you’re more driven by numbers and long-term savings, Avalanche is the smarter option. I also suggest a hybrid approach—start with Snowball to build momentum, then switch to Avalanche for efficiency.
To speed up your progress, I recommend cutting unnecessary expenses, using windfalls, automating payments, and considering refinancing. No matter which method you choose, consistency is key. Every payment gets you closer to financial freedom.