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Strategies to Pay Off Debt Faster (Snowball vs. Avalanche Method)

Stuck in debt? These two science-backed strategies can help you escape.


The Debt Dilemma

Credit card balances, EMIs, personal loans—it can feel like you’re treading water, never really making progress. But with a structured plan, you can regain control and get debt-free sooner than you think.


Step 1: List All Your Debts

Debt

Balance

Interest Rate

Monthly EMI

Credit Card A

₹20,000

36%

₹2,000

Personal Loan

₹60,000

14%

₹3,000

Credit Card B

₹10,000

40%

₹1,200

Snowball vs. Avalanche: What’s the Difference?

Strategy

Focus

Motivation

Ideal For

Snowball

Pay off smallest debt first

Quick wins

Emotional momentum

Avalanche

Pay off highest interest first

Long-term savings

Mathematically optimal


How the Snowball Method Works

  1. Pay minimums on all debts.

  2. Put extra money toward the smallest debt first.

  3. Once that’s done, tackle the next smallest.

Best for: People who feel overwhelmed or need motivation boosts.


How the Avalanche Method Works

  1. Pay minimums on all debts.

  2. Put extra money toward highest-interest debt.

  3. Continue until all debts are paid.

Best for: Saving money in the long run.


Which One Should You Choose?

  • Choose Snowball if you need quick wins and motivation.

  • Choose Avalanche if you want to minimize total interest paid.

  • Can’t decide? Hybrid approach is also possible—start with Snowball, shift to Avalanche.


Bonus Tips to Accelerate Debt Payoff

  • Use bonuses or tax refunds to make lump-sum payments.

  • Avoid taking new loans during the payoff period.

  • Set up auto-debit to avoid late fees.

  • Track your progress monthly—it keeps you going.


Final Thought

Debt freedom isn’t a fantasy—it’s a formula. Whether you choose Snowball or Avalanche, the key is consistency + intention. Every rupee you pay down is a step toward peace of mind and financial strength.


Reference:

  • Investopedia. Debt Snowball vs. Debt Avalanche

  • NerdWallet. How to Pay Off Debt

  • National Foundation for Credit Counseling (NFCC).Debt Repayment Strategies

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