Early Debt Eradication: Snowball vs. Avalanche

In This Issue

• The two fastest ways to kill debt, snowball vs. avalanche
• How to choose the best method for you
• A 7-day quick start plan
• Video: Best Way to Pay Off Debt Fast, link at the end

Quick Take

There are two proven ways to pay off debt faster:

• Snowball: Pay the smallest balance first for quick wins and momentum.
• Avalanche: Pay the highest interest rate first to minimize total interest paid.

Why these work

Both methods keep minimums on all debts, and focus extra cash on one target balance at a time. When that target is gone, you roll its payment to the next target. The difference is what you target first, smallest balance, or highest interest.

Which should you choose?

• Choose Snowball if motivation and visible progress help you stay consistent. You will rack up early wins, which keeps you engaged and on track.
• Choose Avalanche if you are numbers-driven and patient. You will usually pay less interest overall, even if the first win takes longer.

We have generally favored the Snowball method as it gets you out of debt faster than any other debt reduction strategy. The key is to freeze any addition of new debt, cut expenses ruthlessly, and attack debt as much as possible.

7-Day Quick Start

• Day 1–2: List every non-mortgage debt, balance, minimum payment, interest rate.
• Day 3: Pick your method, snowball or avalanche, and the first target.
• Day 4: Set an automatic “debt killer” transfer every payday.
• Day 5–6: Trim one recurring cost, add those dollars to your target.
• Day 7: Celebrate progress, schedule a 15-minute weekly check-in to review and roll payments.

Check out this video for a more in-depth review of the Snowball method:

If you cannot see the player above, click here to watch on YouTube.