Budget Nerds

#36 - The Debt Question... Snowball or Avalanche?

Mar 23, 2022
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ADVICE

Debt Snowball Method Benefits

  • The debt snowball method focuses on paying off debts starting from the smallest balance to the largest.
  • This method builds momentum by freeing up cash flow as debts are cleared, motivating continued progress.
ANECDOTE

Ernie's Quick Win Story

  • Ernie shared how paying off a small medical debt first gave her a quick win and motivation.
  • That early success made the debt pay off journey feel exciting and achievable for her.
ADVICE

Pause Before Redirecting Cash

  • Avoid automatically redirecting all freed-up cash from a paid debt to the next one.
  • Pause to reassess your financial situation and possibly adjust your budget for true expenses or lifestyle changes.
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