The Debt Snowball Method vs. The Debt Avalanche Method: Weighing the Two Down 


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It goes without saying that paying off debt is not like having a piece of cake. It is a major concern for most people and many of them lose their sleep over it. Paying off debt is a gradual process and if not done right, it can hamper your financial growth. 

Thus, it is a topic you must take seriously at all costs. Now the thing is, there are many debt repayment methods. Not all of them are great, but not all of them are bad either. In this article today, I’m going to compare two of the most common debt repayment methods, the debt snowball and the debt avalanche. 

Have a look at each in detail before you move towards debt settlement. I’m sure they’ll help you as they’ve helped others before. So, let’s get this started: 

The Debt Avalanche Method 

The debt avalanche method is a systematic way to manage and erase debt easily and quickly. In the debt avalanche method, you allocate money to make minimum payments on all your debts and direct the surplus to the debt that has the highest interest rate.

It creates a cycle of paying off all your debts at once and it continues until all your debts are finally paid off. On the face of it, it speeds up the process of repaying the money. Plus, the best part of the story is that it saves you from the accumulating interest fees. 

However, in order to successfully adopt the debt avalanche approach, one needs to have enough money in his bank account. Plus, you should also have some money set aside as a part of your emergency funds. Not to mention, this approach requires a lot of discipline. 

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Many people make the mistake of not sticking to it as they see another expense coming. Thus, this strategy often fails as you keep paying the minimum on your debts and save the rest or spend the rest on other things rather than directing it to the debt with higher interest fees.

The Debt Snowball Method 

The second one for today is the debt snowball method, which is another popularly followed debt repayment method. In the debt snowball method, you focus on paying off the smallest debt and once you get done with it, you move on to the second smallest. 

Although it’s a great approach for those who have multiple debts, it leaves the issue of the interest rate behind. Therefore, many people prefer the debt avalanche method over the debt snowball method as the interest rate remains a primary concern for everyone. 

However, if your debts come with a minimal interest rate, the debt snowball method is the best approach. The reason is, it provides you with the motivation you need to grow in life and eliminate debt, once and for all. 

When you get done with one of your debts, even if it’s a smaller one, it gives you a sense of achievement. Not to forget, it’s easier to pay off smaller debts. Thus, it won’t be wrong to say that the debt snowball method is all about momentum and instant gratification.

The Debt Snowball Method vs. The Debt Avalanche Method 

Both these debt management strategies bring along pros and cons of their own. As mentioned earlier, for debts with the highest interest rates; for example, the credit card debt, the debt avalanche method is a safer approach. On the other hand, for debts with minimal interest rates like the debt consolidation loan or the student loan, the debt snowball method is the better option. 

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Refinancing is another option that can be beneficial for students if they have difficulty repaying their loans. In that case, students should check Purefy, which is a great place to find the best lenders and loan rates.

However, one thing that remains common in the two is that both require consistency and devotion. Thus, once you make up your mind to erase the debt, remember that there’s no going back. Lastly, I would like to say that you must consider all things before picking one debt management strategy. Good luck, my friends!


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Abhay Singh

Abhay Singh is a seasoned digital marketing expert with over 7 years of experience in crafting effective marketing strategies and executing successful campaigns. He excels in SEO, social media, and PPC advertising.