If you have ever felt overwhelmed by debt, you are not alone, you are not stuck, and there is a way forward. One of the best things you can do to regain control of your finances is to choose a debt payoff strategy that fits you.

 

Two of the most popular methods are the "Debt Snowball" and the "Debt Avalanche." Both work and have helped thousands of people become debt-free. Let's walk through each, discussing what they are, how they work, and the pros and cons of each.

 

Debt Snowball Method

The Debt Snowball Method focuses on paying off your smallest debt first, regardless of the interest rate. You make the minimum payment on all of your debts, and any extra money goes toward the smallest balance. Once that smallest debt is gone, you take what you were paying on it and roll it into the next smallest debt, continuing until you have paid off all of your debt. Like a snowball, your payment grows larger with each debt you eliminate.

• Focus: Smallest balance first
• Motivation Boost: quick wins build momentum
• Total Interest Paid: slightly more 
• Best for: People who need motivation and wins
• Emotional Benefit: Builds confidence early
• Pros: fast emotional wins, builds confidence and momentum, and easy to stick with when motivation is low
• Cons: You may pay more in interest and not always the fastest path to zero debt

 

Debt Avalanche Method

The Debt Avalanche Method focuses on interest rates instead of balance size. You list your debts from the highest interest rate to the lowest, and put any extra money toward the highest interest debt first. This method saves you more money in the long run by reducing the total interest you pay.

• Focus: Highest interest rate first
• Motivation Boost: Slower start, but more efficient
• Total Interest Paid: Less (saves more money long-term)
• Best for: People focused on math and savings
• Emotional Benefit: Requires more discipline up front
• Pros: Saves the most money in interest and typically faster in total payoff time
• Cons: Progress can feel slow at first and requires more discipline to stay on track

 

The best method is the one you can stick with

Here is the truth: The best method is the one you can stick with. But, if you need more help choosing, this may help. If you are feeling discouraged or overwhelmed the Snowball method might be your best choice. It gives you quick wins and helps you feel accomplished early on. If you are laser-focused on saving money or you have high-interest debts that are costing you a lot, then the Avalanche Method may be smarter financially. And, if you want the best of both worlds? Start with the Snowball Method for motivation, then switch to the Avalanche Method once you have built some momentum. Doing so is completely okay!

 

Need help choosing the right plan or sticking to a plan?

There is no shame in how you got into debt and there is no one "perfect" way out. Whether you start with your smallest balance or highest interest rate, what you are really doing is saying, "I believe I can take control of this!" And that belief? That's the start of something powerful! What  really matters is that you take the first step, keep growing, and become empowered! 

 

At Walters Financial Wellness, I offer personalized coaching to help you tackle debt with confidence and compassion. You don't have to do it alone. Together, we'll create a strategy that works for you life, not against it! Reach out anytime to start your debt-free journey.