Debt Snowball vs Debt Avalanche

Is it better to use the debt snowball vs debt avalanche to get out of debt?You’re ready to pay off debt, but what’s the best way to go about it? Should you use the debt snowball method or the debt avalanche?

Spoiler alert:

If you’ve been in debt for a long time and want to get out of debt for good, the debt snowball is highly likely to be best. (I’ll go into why later.)

But there’s more to it than that, so read on for details, especially if “but won’t I pay more interest if I use a debt snowball instead of a debt avalanche?” just popped into your head.
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The Debt Avalanche Method Explained

Wondering what the debt avalanche method is and how it works? It's all explained here.Wondering what the debt avalanche method is, and how it works to get you out of debt?

In short, the term “debt avalanche” describes the order you pay down your debt in. The order is based entirely on the interest rates you’re charged. (Note: the debt avalanche is sometimes also known as “debt stacking”.)

Here’s why you might (or might not) want to use a debt avalanche to pay down your debt.

Details of how the debt avalanche method works

A debt avalanche works like this: you make a list of all your debts and then place them in repayment order from highest interest rate to lowest interest rate, regardless of the amount you owe on each one.

You do make minimum payments on all of your debts, but you focus hard on paying off the debt with the highest interest rate first. Then you proceed on down your list until everything is repaid. The only thing that changes over time is the amount paid toward the debt at the top of your list.
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The Rubber Band Reminder Method Can Help You Get Out of Debt

This rubber band reminder method is so simple that if I just tell you right out, you'll probably roll your eyes and move on. But you shouldn't.I’m about to tell you something REALLY simple that can totally change your life.

It’s so simple that if I just tell you right out, you’ll probably roll your eyes and move on. But you shouldn’t.

So let me tell you a quick story first to set the stage…

I used to be a financial mess.

For years, I struggled to make ends meet. To pay off debt. To even just get my finances in some semblance of order.

Then I got divorced, and soon I was facing a job loss too. Things got worse. Basically, I was a mess.

I realized I’d better get my financial act together for my own sake and my son.

You know what happened? I started to actually focus on my money. I made it a priority instead of a wish.

And THAT made all the difference.

I was able to do a complete turnaround with my finances. (See our story here.)
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