Debt Snowball vs. Debt Avalanche: The Best Strategy to Get Out of Debt

Two Paths to Becoming Debt-Free If you are carrying multiple debts — credit cards, student loans, car loans, medical bills — you need a strategy for paying them off. The two most popular approaches are the Debt Snowball and the Debt Avalanche. Both can get you to debt freedom, but they take different paths to get there. The Debt Snowball Method Popularized by financial advisor Dave Ramsey, the debt snowball method focuses on paying off your smallest debts first, regardless of interest rate. Here is how it works: List all your debts from smallest balance to largest Make minimum payments on all…