Why Debt Payoff Is a Way to Invest in You
When people talk about investing, they usually mean stocks or retirement accounts. But one of the most powerful ways to invest in you is to pay off debt. Eliminating balances doesn’t just save money on interest, it gives you freedom, confidence, and peace of mind.
The big question is: What’s the best way to tackle debt? Two of the most popular strategies are the snowball method and the avalanche method.
The Snowball Method: Quick Wins and Momentum
The snowball method focuses on paying off your smallest debts first.
How it works:
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List your debts from smallest balance to largest.
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Pay the minimum on all debts except the smallest.
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Throw all extra money at the smallest balance until it’s gone.
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Move on to the next smallest balance, repeating the process.
Pros:
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Builds quick wins and confidence.
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Motivates you to keep going because you see progress fast.
Cons:
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You may pay more in interest over time compared to the avalanche method.
The snowball method is a great choice if you thrive on momentum and need motivation to stick with your plan.
The Avalanche Method: Save the Most on Interest
The avalanche method targets the debt with the highest interest rate first.
How it works:
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List your debts by interest rate, from highest to lowest.
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Pay the minimum on all debts except the one with the highest interest rate.
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Apply all extra money to that debt until it’s gone.
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Move to the next highest interest rate, and so on.
Pros:
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Saves the most money in interest over time.
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Shortens the total payoff timeline if you stay consistent.
Cons:
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Progress may feel slow in the beginning, especially if the highest-interest balance is also the largest.
The avalanche method is best if you’re motivated by saving money and sticking to a logical, math-first plan.
Which Method Is Right for You?
There’s no single “best” method, it’s about what keeps you going. If you want fast wins and encouragement, the snowball method may be your best bet. If you’d rather save the most money long-term, the avalanche method could be the way to go.
The key is choosing a plan you’ll stick with. Whichever you choose, remember that paying off debt is one of the most important ways to invest in you.
Taking the Next Step
Ready to get started? Use the Money Mastery Checklist to see where you stand and take your first step toward financial clarity.
If you want support along the way, the Money Mastery Bootcamp gives you tools, accountability, and coaching to help you succeed.
And for more insights on debt repayment, check out this guide from NerdWallet comparing both strategies.
Final Thoughts
Debt payoff isn’t just about numbers—it’s about freedom. By choosing a strategy that fits your personality and sticking with it, you’ll save money, build confidence, and move closer to your bigger financial goals.
When you commit to paying off debt, you’re making one of the best choices to invest in you.
