Debt Snowball vs Debt Avalanche: How To Pay Off Debt

FTC: This post is not sponsored and I am not a financial advisor. All thoughts and opinions are my own.

If you are a part of the population paying back their student loans (which is coming in at around 1.3 trillion as of late) you have probably heard lots of people talk about the snowball method. This debt repayment method is highly discussed and wide spread, especially if you subscribe to the Dave Ramsey financial routines. However as someone who has paid back over 100,000 dollars in student loans on a teacher salary over the last 8 years, I decided to take a different route. 

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The problem that I've always encountered while paying off my student loans, there are far too many confusing methods and techniques focused on how to pay off debt without ever clarifying the steps that need to be taken. Student loans are scary and beyond annoying, therefore finding out how to pay off debt shouldn't be the same painful process as paying the stupid loans themselves. 

I knew that the debt snowball method wasn't what I wanted to do. However I understood the benefits, as 80% of our financial lives are base off of  behavior, while the other 20% is financial literacy (what you know and understand about money and finances). The debt snowball helps keep that 80% strong by achieving small wins early on to keep you motivated in your debt free journey. 

But what about the debt avalanche? Why did I make the choice to use that method instead, and what are the true benefits? Luckily I broke it down super easy peasy for you below comparing the two main factors of the debt snowball versus the debt avalanche and which is best for you in figuring out how to pay off debt long term/short term. 

Debt Snowball Vs Debt Avalanche: How To Pay Off Debt

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Until next time,