IN SHORT When paying off debt, two popular strategies are the snowball and avalanche methods. Both work. The best one is the one you can stick to.
When it comes to debt, the ideal advice is to avoid it altogether. But life happens — and if you do have debt, the key is to pay it off as quickly and consistently as possible.
Two widely used strategies can help you do this. Coincidentally, both are named after snow. The snowball method looks at the size of the debt, whereas the avalanche method focuses on the size of the interest rate.
Further reading
Why saving beats debt every time
Sources
Investopedia: Debt avalanche vs debt snowball: Which is best?
The calculations are for illustrative purposes only and were generated using AI.
