Debt Snowball vs Avalanche: Which is best to start paying off debt?

So, you're tired of being in debt and wish to create a debt plan.

There's two mayor well-adopted debt paying methods, the debt snowball, and debt avalanche. In this article, I put together a comparison between them both to define which one fits you best. Let's first define how these two methods are alike. 

Both the snowball and avalanche require you to make the minimum payments on all of your debts except for one particular debt. Whatever method you choose, it endorses you to focus intensively on this particular debt, paying it off with every single extra penny you can find. Once the debt is paid you move on to the next debt with the same intensity. Over time you will have more and more money to easily pay off the later debts. The one major difference between these two methods is the order you should pay off these debts. So let's compare these two.

The Debt Snowball Method

The debt snowball method you start paying your debts with the smallest debt balance to the largest balance regardless of the interest rate. Many people feel overwhelmed by their monthly payments. With this method, paying off the smallest debt gives you a sense of accomplishment. Because you start with the smallest debt, you feel empowering and as if you were taking control of your debt. You start to clear those small debts very hastily. So by the time, it comes to start paying off the bigger debts you have the extra cash and confidence. 

The Debt Avalanche Method

Unlike the snowball method, the avalanche method starts you off by tackling the bigger interest debts regardless of the balance. Looking at this method it makes sense to pay off the higher interest. Over time you are saving money on interest and mathematically saves you time and money. 

So Why Choose The Snowball Method?

Many of you may be saying, "Why would I choose the snowball method if the avalanche method saves me money and time?" The main advantage of the snowball method is that it helps you build motivation to continue tackling debt. Sometimes it can be hard to motivate yourself to pay someone else but you. Many people refer to Dave Ramsey as the father of the snowball method. He once said, "I have learned is that personal finance is 20% head knowledge and 80% behavior. You need some quick wins in order to stay pumped enough to get out of debt completely.”

So Which Method Is Best For You?

Choosing a method comes down to your preference and personality. If you are in dire need of motivation then the snowball method is for you. If you want a fast and painful way to remove debt then the avalanche method is for you. Both of these plans can be very useful and can make a difference in your financial life. I recommend you researching more and finding out a perfect method and plan to get rid of this debt.