Debt can feel overwhelming, like carrying a backpack that’s just a bit too heavy every single day. But here’s the thing: paying off debt doesn’t have to be stressful, complicated, or something you avoid thinking about. With the right strategy, you can take control, lighten the load, and build momentum toward financial freedom. 

Let’s explore two proven methods that people use to pay off debt smarter, firstly the Snowball method and then the Avalanche method, plus a few tips to help you choose what works best for you.

The Snowball Method: Quick Wins, Big Motivation 

The snowball method is all about momentum. Here’s how it works: 

1. List your debts from smallest balance to largest (ignore interest rates for now). 

2. Pay the minimum on all your debts. 

3. Throw any extra money you can at the smallest debt first. 

4. Once that’s gone, roll that payment into the next smallest, and so on. 

Why it works: 

• You get fast wins. Knocking out a balance completely feels amazing. 

• It builds confidence and motivation, which keeps you going. 
  
  

Perfect if… you’re someone who thrives on ticking things off your list and needs to see progress quickly.

The Avalanche Method: Maximum Savings, Long-Term Win

The avalanche method is more about efficiency. Here’s the process: 

1. List your debts from highest interest rate to lowest. 

2. Pay the minimum on all your debts. 

3. Put extra money toward the highest-interest debt first. 

4. Once that’s paid off, move down the list. 

Why it works:

• You’ll pay less interest overall. 

• It gets you out of debt faster in the long run.

Perfect if… you’re motivated by saving money and can stay focused without needing the quick wins.  

So… Which One Should You Choose? 

There’s no one-size-fits-all answer. The best strategy is the one you’ll stick with. If you need motivation → go Snowball. If you want to save the most money → go Avalanche. And if you’re somewhere in between? You can even create a hybrid approach. 

What matters most is that you have a plan, and you keep moving forward. Every extra dollar you put toward debt today is a step closer to financial freedom tomorrow.  

Millie’s Smart Debt Tips 

• Automate where you can: Set up automatic payments so you don’t miss due dates. 

• Track your progress: Celebrate every milestone, no matter how small. 

• Don’t forget to live: Paying off debt is important but so is enjoying life. Budget for little joys along the way. 

Remember: debt doesn’t define you. It’s just one chapter in your financial story. With the right plan, you can turn the page and step into a lighter, brighter future.