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

Fatima Qureshi
Jul 3
2 min read

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

Pay minimums on all debts.
Put extra money toward the smallest debt first.
Once that’s done, tackle the next smallest.

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

How the Avalanche Method Works

Pay minimums on all debts.
Put extra money toward highest-interest debt.
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.