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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.
A Penny Saved Is Worth TWO Pennies Earned
There are two ways to achieve your financial goals. One way is to make more money. Get a raise, promotion, bonus or side hustle and put that extra money towards your financial goals. Earning extra money isn’t always easy but it’s an effective way to achieve your goals.
The second way is even more powerful.
To achieve your financial goals, reducing your expenses and saving more money actually has 2x the benefit of making more money.
Every $1 saved is worth $2 earned!