Ep 177: Choosing a debt payoff strategy and why it matters how you approach it

You've heard of the Snowball and Avalanche methods, but which one is right for you? In this episode, we discuss the nuances of these popular debt payoff strategies, exploring the psychology behind each and how they might affect your financial journey.

We're not here to shame you about debt. Let’s be real, in this economy, it's practically a badge of honor to have survived the last few years without getting buried in debt. But, when you're ready to take charge, knowing the right approach can be the difference between a successful debt-free journey and a cycle of frustration.

We'll break down the pros and cons of each approach, sharing insights on how your mindset can play a crucial role in success. Because let's face it, sometimes even the best strategy falls short if you're not mentally prepared for the challenges ahead.

Takeaways

• The snowball method involves paying off the smallest debt first, providing quick wins and motivation
• The avalanche method focuses on paying off the debt with the highest interest rate, resulting in less interest paid over time
• Your mindset is just as important as the math. Choosing a debt payoff strategy depends on personal preferences and financial goals
• Using windfall money and balance transfers can accelerate debt payoff
• Think of it like chicken soup. Do you want to pop open a can of Campbell's? It's quick, easy, and gets the job done, but lacks the depth and soul of homemade. Or, are you willing to invest a little more time and effort to craft a broth that will simmer in your heart (and stomach) for days?
• Focus on making progress over the next 90 days to reduce debt before the holiday season
• Reassess, adjust, and celebrate. Don't get stuck in a rut. If one method isn't working, switch it up. And remember to celebrate every milestone, even the small ones.

Links: 

• Episode 93 – credit card balance transfers
• Episode 142 – how we paid off $200,000 in debt 
• Episode 138 – Tips to avoid holiday overspending

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