How to Pay Off Debt on Your Own (Debt Avalanche vs. Debt Snowball)

There are two major methods to pay off debt on your own: the debt avalanche method and the debt snowball method. I'm breaking down each of these strategies and helping you decide which one is best for you.

A couple of notes that I wanted to add to this video:
If you want to pay off debt, make sure you know the total outstanding balance, minimum payment, and interest rate for each. If you have a lot of high-interest debt, you may lean towards using the debt avalanche method.

If most of your interest rates are around the same amount, you might look at the debt snowball method.

Regardless of which method you choose, stay consistent with it for three months and then reevaluate. Do you still feel motivated to pay off the debt quickly? Or do you find yourself deviating from the plan? If so, you might want to change strategies (which is totally okay to do!). The idea is to stick with the method that is going to pay off your debt the fastest and keep you motivated along the way.

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[donnaterry]

I just realized both methods involve snow. Anyone else hate snow? 😂

[minnienartanaid]

Now that there is no interest acrruing on my student loans, I'm focusing on paying down the largest balance first before the interest kicks back in

[shaunarowe]

I started with the snowball method after I got the small wins I was motivated enough to to the debt avalanche so I could save more and finish paying them off faster.

[StockInvestmentAnalysis]

Great comparison! Your videos are so helpful and well done. I have always wished I could buy my own student loan debt for pennies on the dollar like a lot of these loan companies can.

[Pandorash]

Great vid. Another thing to consider too is that if you pay the smaller ones off quickly, then you have more money quickly to put towards the others. I had never heard of these methods, or listened to financial advice when I was in debt. I paid off small amounts first then focused on larger but if I had had multiple large amounts, I might have prioritised them by interest rate after I had paid the smaller ones off... depends on the debts.

[levihamilton]

We did the Snowball method. Got the idea from video games where you have to kill a big baddie, but the big baddie has minions. If you focus on the big baddie then you end up getting killed by the minions. So, kill the minions then focus all firepower on the big baddie.

[lvs]

I used the snowball method for my credits cards. I used to get excited paying them and adding it to my spreadsheet cause I loved seeing the number go down. I would keep paid ones on my spreadsheet just to see them crossed out.

[FrugalRules]

These are both really good methods for debt payoff. Thanks for sharing!

[jazdramafree]

I started w/ the debt snowball, but with the cares act I've switched to the avalanche method to pay my private student loans... Great vid!

[Collider]

Debt snowball all day! Since January I’ve paid off 2 credit cards and 2 student loans!!!

[davisamills]

I love the snowball method!! Its very motivating when you get rid of the small debts first. :-)

[sandyseibelhager]

We used the debt snowball method. All debt is gone now except for $26, 500 on the mortgage and we're working on that.

[QuesttoFIRE]

Started with the snowball, then switched to the avalanche part way through my debt payoff. Don’t have to pick either/or! 😊👍🏻🔥🔥

[ElenaBoteva]

I'm an avalanche girl, like you said when you were explaining it, I look at it logically, and feel better knowing that in the long run I'll pay less interest :-) I even have an excel sheet I update every month seeing how my long term interest changes and it makes me feel so good when the total end amount drops lower

[anitiktrends]

Avalanche thank you so much...you help me and others too...

[nyashamandaza]

Where is your headboard from? It’s super cute!!

[k.allen.]

Do you think you would you have been able to knock out that student loan so quickly on that salary if you weren't married? (Second income. Might wipe out you having to pay certain things that you would if you were single.)

[autumnsantomauroganggang]

I have kids and am separating from my husband. I need so much help!

[christinaquinones]

Whats your suggestion on the debt that you have at a promo zero APR?

[ambercardinal]

I've been doing the debt snowball since my student loan payments started in November. My question is how much should I be saving if all of my extra income is going to debt in case of emergencies? Also, any tips for paying for grad school in cash while paying off debt?