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What if the "mathematically correct" way to pay off debt isn't actually the fastest way for your family?

What if your personality matters more than interest rates when it comes to becoming debt-free?

What if the method that saves you the most money on paper is the one that sets you up to fail in real life?

If you've been spinning your wheels trying to figure out the "right" way to tackle your debt, you're asking the wrong question. The right question is: which method will actually get you to stick with it until you're debt-free?

In today's edition of Dinner Table Discussions, we'll settle the great debt debate once and for all:

✅ The math behind debt avalanche vs. debt snowball (with real numbers)
✅ Why psychology beats mathematics in most debt payoff journeys
✅ How to choose the method that matches your personality
✅ 5-minute wins that turbocharge either approach

Bon appétit! 🧑‍🍳

Presented by our partner AltIndex

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🍽️ Main Course: The Battle Between Your Brain and Your Calculator

Here's the uncomfortable truth about debt payoff: the method that saves you the most money isn't always the method that actually works.

That's because paying off debt isn't just a math problem… It's a behavior problem. And if you pick the "optimal" strategy but can't stick with it for 2-3 years, you'll end up right back where you started.

So let's break down both methods using a real family's debt scenario, then figure out which one is right for you.

Meet the Johnson family. They've got $54,000 in debt spread across three accounts:

• Personal Loan: $8,000 balance, 7% APR, $90 minimum payment (SMALLEST balance)

• Credit Card: $30,000 balance, 19% APR, $450 minimum payment (HIGHEST interest rate)

• Student Loan: $16,000 balance, 4% APR, $220 minimum payment

They've got an extra $500 per month to throw at debt after covering all their expenses. Which method gets them debt-free faster?

The Debt Avalanche: Attack the Highest Interest Rate First

With the avalanche method, the Johnsons target the 19% credit card first because it has the highest interest rate.

Avalanche Timeline:

As you can see, the Johnsons could pay off all of their debts in 56 months while making $1,260 fixed payments every month with the avalanche method.

Total interest paid: $15,852

Time to debt freedom: 56 months

The Debt Snowball: Attack the Smallest Balance First

With the snowball method, the Johnsons ignore interest rates and attack the $8,000 personal loan first because it's the smallest balance.

Snowball Timeline:

And here, the Johnsons would be debt free in month 63 using the debt snowball method.

Total interest paid: $25,235

Time to debt freedom: 63 months

The avalanche method saves the Johnsons $9,383 in interest and gets them debt-free 7 months earlier. 

The math clearly favors avalanche. So the choice is obvious, right?

Not so fast.

Why Psychology Beats Mathematics (Most of the Time)

Here's what the math doesn't show you: the avalanche method requires you to pay on that car loan for 24 months before seeing any progress (as in, before any of your debts are fully paid off). 

That's two full years of making the same payments with nothing to show for it except a slightly lower balance.

Meanwhile, the snowball method gives you a victory in just 6 months. You eliminate an entire payment. You can cross something off your list. You feel momentum building.

Dave Ramsey puts it this way: “If you were doing math, you wouldn't have debt in the first place.”

Harsh? Maybe. True? Often.

It might be the best option for you to put your payments toward building momentum instead of doing the “optimal” thing.

Then again, maybe not.

So Which Method Should You Choose?

It’s up to you in the end, but here are some guiding thoughts.

Choose Debt Avalanche if:

• You're highly motivated by saving money and optimizing numbers

• You can stay motivated for long periods without crossing a debt off entirely

• You've successfully stuck to long-term goals before

Choose Debt Snowball if:

• You would feel helped by some quick wins to stay motivated

• You've struggled to stick with financial goals in the past

• You have several small balances you could knock out quickly

Choose a Hybrid Approach if:

• You have a mix of high-interest and small-balance debts

• You want to knock out 1-2 small debts for momentum, then switch to avalanche

• You have one massive high-interest debt that needs immediate attention

The Real Secret: Consistency Beats Optimization

Whether you choose avalanche, snowball, or a hybrid approach, the method that works is the one you'll actually stick with for 2-4 years.

A "suboptimal" debt payoff plan that you complete is infinitely better than the "perfect" plan you abandon after 8 months.

⚡ 5-Minute Money Wins for Debt Payoff

Whether you choose avalanche or snowball, these quick wins will accelerate your progress:

1. Set Up Automatic Minimum Payments (2 minutes)

Log into each account and set up autopay for the minimum payment. Late fees can add $30-40 to your balance and destroy your momentum. This prevents that from ever happening.

2. Round Up Your Payments (1 minute)

Instead of paying exactly $347.82, round up to $400. Those extra dollars add up fast and create psychological momentum. If your minimum is $76, make it $100. The round numbers might feel more intentional and powerful (and you’ll just pay down debt faster!).

3. Download a Debt Tracking App (3 minutes)

• EveryDollar: This is Dave Ramsey’s budgeting app. Perfect for paying off debt and general finance needs.

• YNAB: (You Need A Budget): Links to your accounts and automatically tracks progress.

• Debt Snowball: An app that’s just for tracking your debt snowball specifically. Simple and clean.

Seeing your progress in real-time keeps you motivated during tough months.

4. Cancel One Subscription Tonight (4 minutes)

Open your bank app. Scroll through recurring charges. Find one subscription you barely use. Cancel it. Redirect that money to debt immediately. Even $15/month equals $180 extra toward debt this year.

5. Use the Envelope Hack for Extra Payments (2 minutes)

Every time you break a $20 bill, put the $1 bills in an envelope. At the end of each month, make an extra debt payment with the cash. Most families collect $50-100 this way without feeling the pinch.

Bottom Line

The best debt payoff method isn't the one that saves you the most money on paper. It's the one you'll actually complete. If you need quick wins to stay motivated, choose the snowball. If you're disciplined and motivated by optimization, choose the avalanche.

But here's what matters most: pick one method, set up automatic systems, and stick with it until you're debt-free. Your future self will thank you, and your kids will learn that debt doesn't have to be a permanent part of life.

The goal isn't perfection. It's progress.

Cheers to getting 1% better each week! 🥂

👂 We’d love to hear from you

👂 Which debt payoff method worked for your family?

We'd love to hear about it—and your story could help someone else choose their approach.
Just hit reply and share.

Thanks for reading,
—Your friends @ Future Funders 🍽️

P.S. Forward this to a friend who's been "planning" to tackle their debt for the past six months. 😅