Avalanche or Snowball?

Paying off debt can seem like an overwhelming task, but there are two common strategies you can use to make the process more manageable: the avalanche method and the snowball method. The avalanche method involves prioritizing the highest-interest debt payments, while the snowball method focuses on paying off the smallest debt first.

With the avalanche method, start by listing out all of your debts and their interest rates. Make minimum payments on all of them, then put any extra money towards the highest-interest debt until it is paid off. Repeat this process with the next highest-interest debt until all debts are paid off.

The snowball method starts in a similar way, but instead focus on paying off the smallest debt first. Once it is paid off, roll over the amount you were paying on that debt to the next smallest debt, creating a snowball effect.

Both methods have their benefits, but the most important thing is to pick a strategy that works for your specific situation. The key is to stay consistent and disciplined in making payments, and to celebrate each small victory along the way. Paying off consumer debt is a challenging task, but with dedication and these methods, it is possible to become debt-free.