Debt Snowball Or Debt Avalanche Or Both?

Debt Snowball Or Debt Avalanche Or Both?

When it comes to debt payoff there are two popular strategies. These strategies are known as the “debt snowball” and the “debt avalanche”. These two popular strategies to pay off debt take advantage of human psychology or mathematics to help you pay off your debt faster.

Which debt payoff strategy you choose depends on your situation. Choosing one method vs the other may mean you pay your debt off faster OR it could mean you take longer to pay off your debt and end up making more interest payments.

The problem is that everyone in different and there isn’t a one-size-fits-all strategy. We have different amounts of debt. Our debt is spread over different accounts. And those accounts carry different interest rates (And to make it even more complicated, some kinds of debt let you reduce payments in difficult times, like some student loans, which can be a very valuable benefit!).

On top of this we all value things differently. Some of us prefer that immediate feedback (even if it means paying a bit more in the long run). Whereas some of us prefer to delay gratification a little bit, as long as it’s worthwhile in the end.

Choosing the right debt pay down strategy will depend on your personal situation and who you are as a person. In this post, we’ll summarize the two different methods and propose a third method that combines the best of both worlds.

We’ll also show you a cool little debt calculator that will help you decide which debt to pay off first.

Debt: The Nasty Little Gift That Keeps On Giving (& How To Get Out)

Debt: The Nasty Little Gift That Keeps On Giving (& How To Get Out)

Debt is the nasty little gift that keeps on giving. Constantly growing and taunting you with interest and minimum payments.

Left unchecked debt can spiral out of control. The good news is that there are lots of different strategies to help you tackle your debt. Many people have been in the same situation and they’re now living debt free. It just takes some planning and dedication to get out of debt.

Debt elimination is possible. Put debt in its place by doing these three things…

Debt Snowball Or Debt Avalanche? Which Is Best?

Debt Snowball Or Debt Avalanche? Which Is Best?

When it comes to paying off your debt there are two basic approaches. The trendy approach is called the debt snowball. The classic approach is called the debt avalanche.

For reasons that we’ll describe later in this post, both options can help you pay off your debt quickly. The key is to figure out which option is best for you and your debt situation.

Just blindly following one approach could leave you in debt longer than you should.

There is also a third approach called the snowball/avalanche hybrid that takes the best of both methods.

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