Debt Snowball vs. Debt Avalanche | Debt Paydown Strategy

Making the decision to start paying off your debt can be tough. Figuring out the best way to do it can be even tougher. In this video, we'll break down the two most popular debt payoff strategies: the Debt Snowball and Debt Avalanche. We'll look at how each one works, and help you decide which might be best for you.

Timecodes:

0:00 - Intro
0:16 - Debt - #1 Wealth Killer
2:11 - Debt Snowball Method
3:46 - Debt Avalanche Method
4:35 - Automation
5:08 - So, What Is Better?
5:46 - Tae’s Preference

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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

[imkriswithak]

I agree with trying them both I started with snowball then switched to avalanche then snowball again. The key is to be consistent/disciplined.

[DearNurseLife]

My smallest balance is my highest interest. I guess i have a win win

[DanielTPeace]

My reasoning will not allow me to ignore the math, higher interest rates demand attention. Debt avalanche for me.

[aboyu]

Perhaps a combination of both would be idea.

[misseyespy]

Avalanche set and forget split up pay off bank lower interest rate if u spit it up into little sections. Yes u have to wait but it’s soo goodits manageable, I like snowball but doing the other to try to create change thanks for your video

[TheWealthElevator]

The debt snowball method is effective, yet investing in assets such as rental properties or syndications might be a more strategic use of available funds than debt repayment. Targus primarily targets individuals with lower net worth who are burdened by debt. However, for those with a net worth exceeding $1 million, it's often more advantageous to focus on wealth accumulation rather than debt elimination. Repaying debt is not necessarily synonymous with achieving financial freedom.

[jdubincali]

I did the math. I used part of my 401k to pay off my student loan.

[Neoquaker]

Avalanche all the way. It simply makes more mathematical sense and will save you $$ on interest.