The Two Most Popular Debt Payoff Strategies
If you've ever Googled 'how to pay off debt,' you've probably come across two main strategies: the debt snowball and the debt avalanche. Both work. Both have helped millions of people become debt-free. But they approach the problem from completely different angles.
The debt snowball method, popularized by Dave Ramsey, has you pay off your smallest balance first, regardless of interest rate. Once that's gone, you roll that payment into the next smallest, and so on. It's all about building momentum through quick wins.
The debt avalanche method is the mathematician's choice. You tackle the debt with the highest interest rate first, saving the most money over time. It's technically optimal, but it might take longer to see your first debt disappear.
Why the 'Right' Answer Depends on You
Here's what the spreadsheet warriors won't tell you: the best debt payoff strategy is the one you'll actually follow. A mathematically perfect plan that you abandon after three months is infinitely worse than a slightly suboptimal plan you stick with for two years.
If you're the type who needs to see progress to stay motivated, the snowball method might be your jam. That first payoff, even if it's a $500 store card, creates real momentum. You can actually feel yourself making progress.
But if watching interest pile up on your high-rate credit card while you pay off a low-rate student loan would drive you crazy, the avalanche method will help you sleep better at night. There's no point in a strategy that stresses you out.
What Spendify Helps You See
This is exactly why we built the Debt Planner in Spendify. Instead of picking a strategy and hoping it works, you can actually see both approaches side by side. Watch your timeline change. See exactly how much interest you'll save with each method.
- Compare snowball, avalanche, and credit score focus strategies in one view
- See your exact debt-free date for each approach
- Calculate how much extra payments would accelerate your timeline
- Get automatic updates as you make payments
Because here's the real secret: you might start with one method and switch to another as your situation changes. That's not quitting. That's being smart about your money.
The Bottom Line
Stop stressing about which method is 'right.' They both work. The real question is: which one fits how your brain works? Which one will keep you motivated when month four rolls around and paying off debt doesn't feel exciting anymore?
Try both approaches in our Debt Planner. See the numbers. Feel which one resonates. Then pick your path and start walking. The only wrong choice is not choosing at all.
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