The Fastest Way To Pay Off Debt? || Debt Snowball vs Debt Avalanche

What is the most effective debt-payoff strategy? In this video, we will dissect two common methods for paying off high levels of debt.
There is no doubt that Americans have a debt problem. With more than 1.5 trillion dollars in student loan debt and over one trillion in credit card debt, it's time that we discuss this issue.

There are two primary strategies for paying off debt:
1. Debt Avalanche
2. Debt Snowball

Both methods have pros and cons



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[girldaddividendinvestor]

Excellent suggestion at the end. I did the lowest two, then the highest interest rate, and it feels like a ton lifted off my shoulder! Subscribed and shared!

[TheJojo]

Good advice at any age. Thanks, Nate.

[dannysosa]

This video came in handy with student loans thanks a lot.

[InvestingRobinhoodInvestor]

Very helpful Nate! Thanks for helping with debt management

[Aliusmi]

Right to the point. I love your videos 👍🏻

[khemex]

Snowball, exactly what I'm doing right now. Thanks man

[KcRace]

When I learned about this over a year ago, I only had 2 debts at that time. My car and student loans. The balances were about the same but the car had higher interest. I used the avalanche method. After my car was paid off, I actually took 9k from my TFSA to pay off the rest of my student loan. Reason why I took money out of my TFSA was because I was losing money between gaining interest from TFSA compared to paying the interest from the student loan.

[kathyvolpe]

I like the avalanche method, but both seem good. Thanks Nate

[TidusTrading]

Both of these are great! As long as you use a method and don’t ignore your debt!

[brendankacev]

My argument for the avalanche method is that through delayed gratification, you gain more in satisfaction/dopamine as you’ve achieved a “harder” target.

[TruFinancials]

Both are indeed great methods as long as the person is being intentional. Plus there's nothing wrong with swtiching midway through the debt process if needed/wanted.

[Will-jgzs]

I wonder what your boy Dave Ramsey would suggest 😁

[gonzocom]

I’m at 35 thousand in cc debt and I can pay them in full now. Do you recommend negotiating or just pay it all in full?

[jadiecakes]

If you have super high interest on credit cards, you can consolidate with a personal loan for lower interest. so you pay less interest if your attacking that debt last. My credit card was 18% and personal loan is 8.99%. I consolidated with other loans that were also a higher percentage so i bought my repayments (combined) down by about $100, which means $100 extra dollars to throw on repayments

[dranben]

I definitely _feel_ much better doing the snowball. I know feelings aren’t everything, but whatever helps

[Angelo-uogj]

I have a lot of students loans that are split into 8 different loans. Fortunately, the highest interest loans are also the ones with the smallest total payoff amount so, in a way, Im doing both methods.

[sanoski]

Personally, I like the avalanche method! However, it isn't feasible for everyone like you mentioned. Loved the video, Nate.

[mylesyamada]

Wow this guy is hot, he looks like that guy from bates motel. 😍😍

[WheresRevi]

Here because I'm 19 years old and got a bill for over 3500$ for ibuprofen and advil from the ER... I want to flip this bill for credit score points but damn...19 with this bill along with college etc is killing

[xlilxtrukita]

49k debt in student loan stupid decisions i made