Episode 9: Debt Snowball vs. Debt Avalanche: Which Method is Right for You?

Financial Progress Podcast

Summary

In this conversation, Chrissy and Jess discuss the debt snowball and debt avalanche methods for paying off debt. The debt snowball method involves paying off debts from smallest to largest regardless of interest rate, while the debt avalanche method prioritizes debts based on interest rate from highest to lowest. They emphasize the importance of celebrating small wins along the debt payoff journey, as these wins provide motivation and momentum. The debt snowball method provides emotional wins, while the debt avalanche method focuses on long-term financial benefits. They encourage listeners to find what works best for them and stay committed to their financial goals.

Keywords

debt snowball, debt avalanche, paying off debt, celebrate small wins, motivation, financial goals

Takeaways

• The debt snowball method involves paying off debts from smallest to largest, while the debt avalanche method prioritizes debts based on interest rate from highest to lowest.
• Celebrating small wins along the debt payoff journey provides motivation and momentum.
• The debt snowball method provides emotional wins, while the debt avalanche method focuses on long-term financial benefits.
• It's important to find what works best for you and stay committed to your financial goals.

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