Want to Be Debt-Free? Here’s the Budget System That Actually Sticks

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.

1. Pay off your smallest debt first

2. Celebrate the win

3. Roll that payment into the next debt

4. 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.

1. Pay off the debt with the highest interest rate first

2. Move down the list as each one disappears

This reduces the total interest you pay.