Frugal Friends Podcast The Best Debt Payoff Strategy: Debt Avalanche vs Debt Snowball
Dec 5, 2025
Explore the hot debate between debt payoff strategies: the avalanche and snowball methods. Learn how to match your personal financial style with the right approach for you. Discover the surprising similarities in savings between the two methods and the importance of psychological wins. Dive into a unique hybrid strategy and hear about their 90-day challenge designed to kickstart your debt freedom journey. Plus, get practical tips for staying motivated and enjoying the process of becoming debt-free.
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Avalanche Minimizes Interest
- The debt avalanche targets highest interest rates first to minimize total interest paid.
- It often saves the most money but can feel slower and hurt motivation initially.
Snowball Builds Momentum Fast
- The debt snowball targets smallest balances first to create quick psychological wins.
- Those early wins boost motivation even if they cost slightly more in interest over time.
Difference Often Small
- In many realistic scenarios, avalanche and snowball differ by only a few hundred dollars.
- Sticking with a plan and consistency often matters more than small interest savings.
