The debt snowball and debt avalanche methods are two popular ways to pay off debt. With the debt snowball method, you pay off your debts in order of smallest to largest balance. The debt avalanche method focuses on paying off high-interest debts first.

Paying off small balances first with the debt snowball method allows you to build momentum. As you pay off each small debt, you get the satisfaction of eliminating it. This can help motivate you to keep paying off debt. However, you end up paying more interest overall compared to the debt avalanche method.

The debt avalanche method saves you the most money on interest charges since you pay off high-interest debts first. However, it may take longer to pay off your first debt, so you have to stay disciplined. If paying interest motivates you, then the debt avalanche method is a good option. But if you need quick wins to stay on track, the debt snowball method may work better.

A good approach is to start with the debt snowball method to pay off a few small debts and build momentum. Then switch to the debt avalanche method to save on interest. This hybrid approach lets you experience early success paying off debt while also minimizing interest charges in the long run.

The most important thing is that you have a plan to pay off your debt and are consistent in following it. While the debt snowball and debt avalanche methods differ in their approaches, they are both effective. Pick the one that fits your financial situation and will keep you motivated. Then make a budget, cut expenses where you can, and put as much money toward your debt as possible each month.

With time and consistency, you can pay off your debt, regardless of which payoff method you choose. The debt snowball and debt avalanche methods are simply tools to help you develop a sustainable path to becoming debt-free. In the end, the right method for you is the one that will motivate you to eliminate your debt once and for all.