The Avalanche and Snowball strategies are two most popular ways to tackle your debt, each with its own unique approach.
- The Avalanche method focuses on paying off your debts with the highest interest rates first. This way, you save money on interest in the long run, making your debt-free journey quicker and more cost-effective.
- The Snowball method, on the other hand, encourages you to start with your smallest debts. By knocking out those smaller balances first, you get a sense of accomplishment and motivation to keep going.
Both strategies can be effective—it just depends on what keeps you motivated and on track!