Step 6: Choose a Debt Payoff Strategy—Snowball or Avalanche
Both methods work. Choose the one that works for your psychology.
Debt Snowball Method (Ramsey Solutions)
Perfect for beginners who need motivation.
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Pay off your smallest debt first
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Celebrate the win
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Roll that payment into the next debt
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Repeat
You build momentum fast because you see quick results.
Debt Avalanche Method (Citizens Bank)
Perfect if you want to save the most money long-term.
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Pay off the debt with the highest interest rate first
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Move down the list as each one disappears
This reduces the total interest you pay.
