Snowball vs Avalanche: Which Is Better?
Both methods work. The key is choosing one and sticking to it consistently.
Avalanche Method
- Pay minimum on all debts
- Put extra money toward highest interest rate debt
- Mathematically optimal - saves the most money
Snowball Method
- Pay minimum on all debts
- Put extra money toward smallest balance
- Quick wins keep you motivated
How to Get Out of Debt Faster
- Stop adding debt: Cut up credit cards if needed
- Increase income: Side hustles, overtime, selling items
- Reduce expenses: Cancel subscriptions, cook at home
- Automate payments: Set up auto-pay to avoid missed payments