What’s the Deal With These ‘Snowball’ and ‘Avalanche’ Debt Repayment Methods? Here’s How to Know Which One Is Right For You.
Living with debt can be a heavy burden, affecting your financial well-being — and peace of mind. In fact, in the second quarter of 2023, household debt in the U.S. rose to a whopping $17.06 trillion, led by credit card balances, according to the Federal Reserve. Fortunately, there are methods to help you tackle debt systematically and regain control of your finances. Two tactics for managing debt are the Debt Snowball and the Debt Avalanche methods. Here, we’ll break down these methods and how they work and help you decide which strategy might be right for your financial situation.