Snowball vs. Avalanche Method for Paying Debt

Stacking coins

Are you ready to begin paying off your debt? The simple fact that you’re in a position to start doing so is likely a huge relief in and of itself, but if you’re going to be successful, you’ll need to have a structured payment plan to follow. The two most popular methods for tackling debt are the snowball vs. avalanche. Many have seen success following both methods, but one may work better for you than the other. Explore the differences between the avalanche vs. snowball method with Xpress Cash to get started on the road to financial recovery!

What is the Debt Avalanche Method?

Following the debt avalanche method, you’ll be making minimum payments on all of your debts. Any funds that remain will be used to start tackling whichever debt has the highest interest rate. You’ll continue with this method until you slowly but surely make your way down to eventually paying off your final debt with the lowest interest rate. Many individuals prefer the avalanche method because it saves you more money on interest over time, which can add up to hundreds of dollars.

What is the Debt Snowball Method?

In the debt snowball vs. avalanche, you’ll again make minimum payments on all of your debts, but this is where the similarities end. Rather than tackling the debt with the highest interest rate first, the snowball method calls for you to go after the smallest debt first – nevermind interest rates. Why would someone choose the snowball method when the avalanche method is proven to save you more money? It’s no secret that paying off debt takes patience and determination. With the snowball method, you’ll see small debts disappear more quickly which, for some, provides the motivation they need to keep chipping their way to financial freedom. 

Get Help Paying Off Your Debt

Searching for additional financial advice on topics like balance transfers and debt consolidation loans? Xpress Cash is here to help! Contact us or visit one of our locations in Michigan, Idaho, or Wisconsin to get started today.