The Hybrid Method: Combining Snowball and Avalanche for Faster Results
What Are the Snowball and Avalanche Methods? Before diving into the Hybrid Method, let’s briefly review the two foundational strategies it builds upon. The Snowball Method The Debt Snowball Method , popularized by financial expert Dave Ramsey, focuses on paying off your smallest debts first, regardless of interest rates. Here’s how it works: List all your debts from smallest to largest balance. Make minimum payments on all debts except the smallest one. Throw as much extra money as possible toward the smallest debt until it’s paid off. Roll the payment from the paid-off debt into the next smallest debt, creating a “snowball” effect. Why it works : The Snowball Method leverages quick wins to build momentum and motivation. Paying off smaller debts faster gives you a psychological boost, making the debt repayment journey feel more achievable. Keywords : Debt Snowball, pay off debt fast, small debt repayment, financial motivation. The Avalanche Method The Debt Avalanche Method takes a mor...
