Did you know that approximately every 3 out of 4 households in the U.S. carry some form of debt? Debt can come in many different forms like student loans, credit cards, car payments, and etc. No matter what age a person is, debt will most likely stress them out at some point in their life (it’s better to learn young). In order to minimize that stress, learning different strategies to eliminate it is important. The Debt Snowball Method is essentially a strategy where you will try to pay off the debt you owe the least amount of money to first.

 

Now getting into the detailed steps of this process, you will first want to order all of the debt from smallest to biggest. After that, set up automatic payments on all the debt for the minimum amount due. Every single month, review your budget and see what amount of leftover cash you have. With that money, use it towards the smallest amount of debt owed. After one debt is paid off, you do the same process with the other debt. With discipline, all of your worries will slowly go away, and your debt will eventually be paid off. The pros of this method is that it is very simple to follow, gives a quick sense of motivation, reduces the amount of bills you will need to worry about, and also builds a good and healthy habit. Of course, with pros, cons will also follow. The major con is that this strategy does not take interest rates into account. If all your debts amount owed is very high or your largest debt has the highest interest rate, then you won’t be able to maximize your savings using this method. If this is the case for you, the Debt Avalanche method seems more beneficial (I will not talk about it in this writing).

 

Overall, knowing how to eliminate debt is very important. However, the strategy used to eliminate the debt depends on the types of debt you are dealing with.

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Luthi, Ben. “Debt Snowball Strategy: How Does It Work?” Experian, 12 Aug. 2025, https://www.experian.com/blogs/ask-experian/how-does-debt-snowball-work/