MAY 3RD, 2020

💎 Debt Snowball Method vs. Debt Elimination Method

💎 Debt Snowball Method (DSM)

PROS

• With the DSM, there is a psychological benefit of seeing results sooner and that may inspire you to continue on your debt elimination journey. By paying off debts with smaller amounts first, you have multiple short-term wins to celebrate and be proud of.

CONS

• It will take longer to pay off your debts because you will be paying more in interest rates over time.

💎 Debt Avalanche Method (DAM)

PROS

• With the DAM, you save more money long-term, because you are paying off debts with the highest interest rates first. 

CONS

• The DAM takes extreme discipline and may be difficult for many people to start their debt elimination journey with this method.

💎 When I started my debt elimination journey, I started with the Debt Snowball Method. This is because I was so overwhelmed with the amount of debt that I had, that I wanted to feel good, feel accomplished about SOMETHING regarding my money! So I used the debt snowball method to have multiple WINS during my journey and to give me motivation to keep going!

💎 I am now using the Debt Avalanche Method. This is so because after paying off $23,000 of debt in 2 years, I have a high sense of accomplishment towards my debt elimination journey. I can now focus on paying off accounts with higher interest rates, to save money in the long run!

💎 Everyone’s debt elimination journey is unique and how I utilized the two methods may not work for you and that’s okay! The point is to just START! Choose a method and just START!

If you’re interested in how to actually apply these methods, or to determine what method is right for you, subscribe to the Own Your Check e-mail list in the footer!