Debt Payoff Strategies

Understanding Debt Payoff Strategies

BeDebtFree supports multiple mathematically-proven strategies to help you become debt-free faster.

Avalanche Method

The avalanche method targets debts with the highest interest rates first. This approach minimizes the total interest you pay over time.

How It Works

1. List all debts by interest rate (highest to lowest)

2. Pay minimums on all debts

3. Put extra money toward the highest-rate debt

4. Once paid off, roll that payment to the next highest

Snowball Method

The snowball method targets debts with the smallest balances first. This provides psychological wins that keep you motivated.

How It Works

1. List all debts by balance (smallest to largest)

2. Pay minimums on all debts

3. Put extra money toward the smallest balance

4. Once paid off, roll that payment to the next smallest

Which Should You Choose?

If saving money is your priority, choose Avalanche. If staying motivated is more important, choose Snowball. BeDebtFree shows you the projected payoff for both methods so you can make an informed decision.