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“Just find what works for you, what style suits you best, and just be confident enough to rock it.” Odell Beckham, Jr.

I should have titled this post, “Debt is a 4 Letter Word” because it IS. This little monster has caused more than it’s share of stress and sleepless nights, and kept many of us from reaching our life goals. The first step to getting out of debt is recognizing that whatever you’re doing isn’t working and something has to change. Yeah, that old definition of insanity, right? So, how do you tackle your debt? You use the method that WORKS FOR YOU!!

While there are probably as many methods of dealing with debt as there are starfish in the ocean, I’m going to focus on 2 of the most well-known–the Debt Snowball and the Debt Avalanche. Both methods focus on paying off smallest to largest, but the way the debt is listed is where they differ.

With the Debt Snowball, your debts are listed by amount, smallest to largest. You pay the minimum payment due on all but the smallest debt, and throw all your extra cash at that smallest debt. Once that debt is crossed off your list, you do the same with the next debt on the list, and so on until all the debt is paid. More information on the Debt Snowball is available here.

With the Debt Avalanche, you list your debts by which has the highest interest rate, regardless of amount. All your extra cash is put towards the debt with the highest interest rate, while paying the minimum payments on the rest. Once the highest interest rate debt is paid, you move on to the next one on your list, and continue until all of the debt is paid. More information on the Debt Avalanche can be found here.

So, which is better? It depends…according to research, the Snowball has the psychological advantage of allowing you to cross items off your list a little faster since you’re starting with the smallest amount first. Conversely, the Avalanche will save you the most money since you’re starting with the debt with the highest interest rate. This method really takes a good bit of discipline, since it will cost you more money in the long run if you miss a planned payment.

I ask again-which is better? I can’t answer that, since I’m not you. The one that works for you, the one you stick to, is the better of the 2 methods. If you’re not going to stick to your plan, it doesn’t matter which plan you choose. I’m a firm believer in “there’s no ONE right way” when it comes to getting out of debt. If you create a plan and work it with intention, you WILL get out of debt. It takes a lot of planning, budgeting, and discipline (ESPECIALLY discipline!), but it CAN be done. How do I know this? Because I’ve done it. It took a TON of discipline, along with some sacrifice, but it was all worth it.

Have you paid off a good bit of debt? Leave a comment and share how you did it! Thanks!!

Be well and God Bless-until we meet again…


Dave Ramsey

Nerd Wallet


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