We’re $43k in debt and trying to figure out the best way to tackle it. Should we start with the smallest balances and work our way up (snowball method) or focus on the highest interest rates first (avalanche method)? None of this debt is from credit cards, so we’re just wondering what’s the smartest way to get out of this quickly.
I like the snowball method. It’s a great way to stay motivated because you see progress faster, even if it costs a little more in the long run.
Voss said:
I like the snowball method. It’s a great way to stay motivated because you see progress faster, even if it costs a little more in the long run.
Totally agree. Knocking out smaller debts quickly feels good and keeps you going.
Voss said:
I like the snowball method. It’s a great way to stay motivated because you see progress faster, even if it costs a little more in the long run.
Why not just focus on paying less overall? The avalanche method saves you money and gets you out of debt faster.
@Ashton
The snowball method is more about building habits. It’s like learning to manage your money better step by step. That said, I personally paid off my highest-interest debt first because I wanted to save as much as I could.
@Zhen
Fair point, but I still think focusing on saving money by paying less interest is better in the long term.
When I was in $60k of debt, I sold my car and bought a cheap one for $5,000. It really helped. Here are some other tips: 1) Cut up credit cards. 2) Cook at home and avoid takeout. 3) Cancel any subscriptions. 4) Sleep on big purchases. 5) Talk to someone about money habits. 6) Reward yourself occasionally but stick to cash budgets. 7) Cut back on alcohol or other extras if needed. 8) Stay active—it helps with stress.
@Zhen
Thanks for the tips, but we don’t really have bad habits like that. No credit cards, no subscriptions, and we don’t eat out. We’re just deciding whether snowball or avalanche is better.
Tatum said:
@Zhen
Thanks for the tips, but we don’t really have bad habits like that. No credit cards, no subscriptions, and we don’t eat out. We’re just deciding whether snowball or avalanche is better.
In that case, snowball all the way. It’s great for staying motivated.
With two small balances, the snowball method would probably work well for you. You could pay off the smaller debts in a couple of months and then put that money towards the bigger ones.
I’ve used a mix of both methods. I started with the avalanche method for high-interest student loans, but then switched to snowball for the emotional wins. Now I just pay off the debts I hate the most.
What kind of debt is it? Cars, loans, or something else? What’s your household income, and do you have a budget? It’s hard to give advice without more details.
Micah said:
What kind of debt is it? Cars, loans, or something else? What’s your household income, and do you have a budget? It’s hard to give advice without more details.
We have a budget and set aside money for both savings and debt. The breakdown is: car $22k, truck $7k, student loan $12k, side-by-side $750, and tires $1,500.
@Tatum
Got it. I’d suggest focusing on the smallest balances first to free up extra cash for the bigger ones. Selling the side-by-side might also be worth considering to speed things up.
Micah said:
@Tatum
Got it. I’d suggest focusing on the smallest balances first to free up extra cash for the bigger ones. Selling the side-by-side might also be worth considering to speed things up.
Thanks, but we’re not planning on selling anything since we’re not struggling. We’ll definitely pay off the smaller balances first and roll that money into the bigger ones.
I used the snowball method to start, but switched to avalanche later because snowball was costing me too much in interest.
I’m $17,000 in credit card debt, and the snowball method has been working great for me.
If you’re not sure where to start, there are some great online tools to organize your debt and figure out a repayment plan. It’s a math problem, and breaking it down makes it easier to manage.
Both methods work, but what really matters is cash flow. Spend less, earn more, and stick to the plan. Any strategy will fail if you don’t change your habits.
I picked up a second job and started working an extra 15–20 hours a week. I should have $15k paid off in six months.