Debt Snowball vs. Debt Avalanche: Choosing the Right Debt Reduction Strategy
Apr 21, 2025
So, you're staring down a mountain of debt and feeling overwhelmed? You're not alone! Millions of people are in the same boat. The good news is that there are proven strategies to tackle your debt and regain control of your finances. Two of the most popular methods are the debt snowball and the debt avalanche. But which one is right for you? Let's dive into the debt snowball vs. debt avalanche debate to help you make the best decision.
Understanding the Debt Snowball Method
The debt snowball method, popularized by Dave Ramsey, focuses on motivation and quick wins. The core idea is to list your debts from smallest balance to largest, regardless of the interest rate. You then make minimum payments on all debts except for the smallest one. On that smallest debt, you throw every extra dollar you can find until it's paid off. Once that's done, you move on to the next smallest debt, adding the payment you were making on the first debt to your new payment. This creates a
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