Debt Snowball Vs Debt Avalanche | Which is the faster Debt Payoff Strategy?

[@donnawashburn1638]

My husband is collecting SS at 65 this year we’re using this money to pay off debt and in 5yrs when I collect SS we’ll be debt free ! We are using this method for doing that !

[@meljordan220]

The avalanche method is good if you don't get discouraged easy. For many people they have greater success with the snowball simply for the quick reward they get. Given the examples of bills above, you would have your first win in 3 months instead of 3 years if you arrange it smallest balance paid off first. Like he said it just depends on the emotional encouragement that paying off debt will bring. If that part does not affect you then the avalanche would be better.

[@journeywithme_erika1890]

This is so true. Spending fast!

[@usernameluis305]

And in that 3 years of time how much would be spent on minimum payments for the smaller debts? It's probably offsets the positive value of trying to reduce the interest rate piling of the highest balance

[@rickbackous1041]

The wife and I have never had a credit card debt, but we applied this method to the rest of our loans when we got married back in 1981. We had relatively modest jobs and we managed to pay everything off and have lived debt free since 1993. We were even able to save and invest through this time but imagine how much we started investing when all the debt was paid off. Retired at 59-1/2 and living very comfortable with no pensions.

[@Growing-Our-Retirement]

Totally agree with attacking the higher rate debt first! Combined with a spending “Fast” you can move some debt mountains. Great video!

[@briakahoney8688]

I ENJOYED this video, I've learned so much and such a few minutes....THANKS a Mill

[@donnawashburn1638]

People need to realize to get credit cards payed off they have to stop using them when there paid off rip them up through them away to be debt free!

[@bryandonnaud6197]

Always great!! Your a good guy and I'm glad your on our side!!

[@misseyespy1]

Hi thank you. Yes avalanche automating payments is great months go by when I wouldn’t have paid it down. Tempted to do snowball but I have stuck to avalanche. Automation omg also is one of the main key to the solution . Thanks for your video

[@donnymac575]

We be better for my ocd to list the highest interest rate first, followed by the next highest and so on. Not listing them in order, from highest to lowest, is mind numbing.

[@davidjsouth231]

I have one credit card I’m using the snowball affect, wife has one car loan, her student loans, I have a car loan under my name but my daughter is responsible for that because it’s auto pay. Auto debit from my account and auto deposit from her account. She knocked 3 years off her loan with a lump sum payment up front. I’m planning on 5 years minus the mortgage on student loan since she’s on the public servant student loan plan Home loan

[@ethanwaynebell]

Loved the video!

[@nancyadams9426]

This is very helpful. Thank you.

[@wendykornfein3337]

Thank you.

[@malik1285]

Would you recommend focusing on paying down promotional 0% interest debt first before starting avalanche?

[@jgkrus]

Good question..

[@Businedu]

You never miss 🔥

[@TheWholeTruthAndNothingBut]

If I have solar (purchased), in place of an electric bill and the loan is .99%, do you consider this a utility bill? It's not on my credit report.

[@bgroovin1343]

Can't find your video about opportunity costs with paying off a mortgage.

[@kmarshie]

If you have the same interest rate on multiple debts, should you pay the one with the highest balance until all debts at that same interest rate are paid off?

[@FinancialFastLane]

No, I would focus on the smallest balance first.

[@FIRE_DrNinjaTurtle]

This assumes that life does not happen during the payoff journey.

[@FinancialFastLane]

True! It always does, but adjust and keep going the best you can.

[@possle]

Does the snowball method apply to 0% interest debts (0% balance credit card)?

[@FinancialFastLane]

Yes, it ignores interest rates completely.

[@jgkrus]

So i take it you dont like the Snowball and prefer Avalanche, correct?

[@FinancialFastLane]

@@jgkrus Both work well, mathematically avalanche is better but emotionally snowball is more motivating.

[@jgkrus]

@FinancialFastLane Thanks...

[@jgkrus]

I think I should start off with snowball because I can pay off 2 cards and apply those payments to the larger balance and pay it off in a few months. Most of this debt is from unforseen medical emergency that wiped out my savings... I think in general you say start somewhere and stay consistent but adjust when nessary...

[@FinancialFastLane]

@ Yes, sounds like a great plan!

[@GiedreJakubauskiene]

❤❤❤