How To Pay Off Debt | Avalanche vs Snowball Method | Aja Dang
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- Опубликовано: 7 сен 2024
- I'm Aja Dang and today I'm talking about the two different ways to pay off debt. Avalanche and Snowball Methods are two of the main debt pay off strategies but which is better? The answer is, it depends on you!
The Debt Snowball method has you paying off your debt in order of smallest amount owed to the largest amount owed regardless of interest rate. The debt Avalanche, has you paying off your debt from highest interest rate to lowest interest rate, regardless of amount owed.
There are pros and cons to both, and depending on who you ask, some may have very firm opinions about which method you should use but I hope this videos gives you a good enough explanation of both so YOU can make the best decision for your debt pay off journey.
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Because of Aja, I paid of $13k in credit card debt last year and am half way done with my student loan debt this year. YOU ARE A QUEEN!
sounds like YOURE the Queen!
Well done!!!
Another method that no one talks about is the Tsunami Method, which is paying debt in order of the most emotional impact. This is the method that me and my husband started using, because I’m an emotional person and when we got sick of tired of being in debt we tackled the debt that was overwhelming and pissing us off the most. That motivated us more than anything! Once we tackled the debts that was bothering us the most and we got lazy we switched to the Debt Snowball to switch it up and get back excited!
I love that idea!
Can you give us an example of which debt pissed you off the most? I feel like I’m such a numbers person so the one with the highest interest rate would be the one that pisses me off the most
Oh interesting I have not heard of this before? Its almost like the fire community for debt. Where in fire they started out with one method but now they have like 10 Fire finish lines. :) In a way the Snoball method is an emotional method as well, it gives you those quick wins :)
Oooo! I didn't even think of that idea. That's a great one!
I've never heard of this method, so thank you for sharing this!
i still cant get over how good you look with bangs!!!
What I’ve enjoyed about the avalanche method is that while trying to tackle the highest interest debt, I’ve just ended up paying off some of my smaller ones during that time anyway. The higher interest makes me feel the worst, so it’s important to me to focus all of my extra money there. But I totally get why you want want to do snowball!
I started snowball and once I got things going, I switched to avalanche and that's how I'm paying off my students loans. Watching all things Aja for continued motivation! 37k to go!
I guess I’m complicated lol I did both methods! I evaluated all my debts then I made a plan. I think it’s because I had a mix of loans and credit cards where some weren’t accruing interest, some had really low rates and others had stupid high rates so it made more sense to pay off the things with the highest interest rate first to save money. It broke down to basically being CC paid with avalanche method and loans being paid with snow ball method. I’m just really strategic, don’t mind math, and wanted to save money and make my money go farther. Paid off 15k so far!
That doesn’t make you complicated, that shows that you know how to make the best decisions for you
I had to pause because damn like it just feels so good to be debt free. I did cash stuffing while I discovered you paying your debts. I didn't have that big of student loans, but your hurt spoke volumes. Now just seeing you smile instead of cry is so amazing! Cheers!
I started on my debt-free journey 10 months before everything shut down. I’m so glad I went with the snowball method because I was able to cut monthly minimum payments by about half. That freed up cash flow allowed me to divert any extra money into savings during this state of emergency. If I had gone the avalanche route, the total monthly minimum would have been a struggle and I wouldn’t have been able to pad my emergency fund.
Just starting my financial journey ($400 of debt) and I'm so glad these tools are at our disposal!
I switch between both! Right now I’m doing the avalanche method. Once my last grad school loan is done I’ll switch back to snowball
Aja Dang rockin' those bangs 😎😎 always so happy when you post!
I paid off all my CCs with a personal loan. Every card was over 15%-24% interest. My personal loan paid off everything with only a 5% for 5 years. I paid it off in less than 2 years :)
If I was in debt again, that’s what I would do.
I'm working on paying off mine and my husband's debt. I alternate between a cc with a high balance and high interest rate then to a low balance low interest rate then back to a high one. I get those small wins in between the long, drawn-out balances.
Thanks a lot for the advice i started snowball method in 2020 and on the 24 june 2022 i became debt free.
Oooo hair loooking good! Make up on fleek eyes lips and nails on fleek
You always inspire me to cut off the amount of unneccesary spending!! Thanks for the videos ❤️
This is also how I started, but after 2 of my tiny student loans, I instead switched from the snowball to the debts with the highest minimum monthly payment. That meant paying off my husand's and my vehicles first. Bills felt soooo much easier once there wasn't a mandatory total of $450 to pay every month. So far we have paid $89,000 of debt total and the only things remaining are my student loans (now 70k) and our new house ($320k). We've got this in the bag
I started with snow ball and then used the avalanche method because I am more analytical.
The last 20 seconds of this video are 🔥!!! Love your content!!!!!
I need to start budgeting but I get paid weekly and my paycheck varies. I don’t even know where to begin
The bang suits you well Aja!
You look like a BOSS lady!😍 def keep the bangs!
The best way to pay off debt is get many projects like what happened to her, if you aren’t in RUclips you’re stuck with your debt for a long time.
The avalanche method, is the one for me. Because the little ones are very little. But the big ones those interest rate is what hurts me. My biggest is like $6000 with 28% intrest
"I hope you kick debt ass." Hehe, love it! So informative as always. :)
You helped me become debt free! And I’m just as interested in this video even though I don’t need these methods anymore 🤷♀️
PS your bangs look AMAZING
If anyone was curious, in the example she gave heres how each method pans out:
Snowball: 53 months to debt freedom, $3980 extra in interest payments
Avalanche: 52 months to debt freedom, $3584 extra in interest payments (shave off one month of debt and save ~$400 in interest, plus of course getting to use the $600 from the upcoming month for something other than debt).
So not too much of a difference in this specific example. It makes a lot more difference with bigger debts as some people have mortgages and $50K plus in students loans alone.
I would link the spreadsheet I made to figure this out but I dont think RUclips allows that it might mark my comment as spam
Aja coming through with some great advice! 😊
I am currently doing the snowball method. But I might switch over next year!
i did both. and paid off some of my debts
Hi Aja - Amazing value delivered as always. This will definitely help people gain some clarity on what approach may work for them 😊💖👑 Loved your session at the TFD Career Day event as well 🔥
I'm the snowball type. I started a few different ventures to help me get to that debt free life in a few years, fingers crossed. Two blogs, a RUclips channel, online store and a 9 to 5. 🙄
The bangs look amazing on you, Aja! Always love hearing you talk shop and learning new things.
Thank you so much. You appeared just when I needed a decent plan to pay off my credit card debts. I’ll try the snowball method to see how it’s gonna turn out to be. ❤️
You kinda look like Lucy Lawless (Xena) in the thumbnail.
yes to stick with what works for you!!!
thanks aja for motivating me to keep making videos! always appreciate you informing us how to achieve financial freedom. sending love ❤️❤️❤️
I like paying the smallest amount then the highest. Usually the highest offerse to feel secure with the long term debt while the lowest makes me feel like I'm dragging them for too long not knowing when it will end.
Vlog with brian please 🙏🏻
Snowball has been gamechanging for me!
Hi Aja.
Is there a way to mail you something.
I saw an ad using some snippets from your video to promote this investment “secret”/ scheme.
Not sure if it’s you. But if there’s an email for me to send a screenshot of it, let me know.
Please post a new How to Budget :)
Please Please Please do an updated how to build a budget video!
Great video Aja! Always great to listen to and there is so much information out there. End of the day it comes down to each person and what they are comfortable with and what has been successful in the past. Thanks for all the work you put into these.
Hahahaha loved your outro!! All your videos have been helpful! An updated budget video would be phenomenal🥸
Always snowball.
Please do a budget videooooo!!! Thanks for this!
Another great video. Thank you! Your hair looks amazing
You’re looking good Aja ♥️
Thank you so much for this video!
great content, congratulations on the channel 🙏👏🚀😅🚀. Brasil Rio de Janeiro 👀
Do you have any advice about managing money/sharing expenses with your partner?
Cute bangs and white shirt poppin!!!!
Love your video aja..
I’ve been doing the snowball, didn’t know it was called that. How do you pay your bills? Is everything on line? Are they set up on auto pay? I have chase and I’m thinking about setting them up in the app. Does anyone still use checks and stamps in the mail? I still have Scooby Doo Checks but don’t get the chance to use them anymore. I’ve had them for years lol 😆
*Hey everyone, I’m Aja BANGS!*😱🤩🤩🤩
Have you looked at Undebt.it online to setup for either method?
ok
Am I first?
Aja, you’re so pretty
Aja! I love the bangs! When you first introduced them you seemed uncertain and I was worried for you 😩. You look SO chic.
Hi dear
How r u ?
❤️