Debt Snowball vs. Debt Avalanche: Which is the BEST Way to Pay Off Debt?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Investing, Business

4.7 • 3.1K Ratings

🗓️ 11 June 2021

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

If you find yourself with too much debt, you’re not alone. America has a debt problem. The accumulation of high-interest debt is one of the quickest ways to derail your financial life, so it’s no surprise that strategies and philosophies on debt re-payment are a popular topic among financial commentators. With so many people telling you what to do with your debt, how do you know which approach is the best? In this episode, we break down two of the most popular approaches to debt re-payment (the Debt Snowball and the Debt Avalanche,) then do the math to help you understand which one will maximize your money and get your finances back on track! For more information, visit: https://www.moneyguy.com/2021/06/debt-snowball-vs-debt-avalanche-best-way-to-pay-off-debt/ Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You've heard of them.
0:01.3	Dez Snowball.
0:02.6	Dez Avalanche.
0:03.9	Which one works better?
0:22.4	Brian, I'm super excited about this show,
0:24.3	because I think this may be one
0:26.9	when we ruffle a few feathers,
0:28.8	because we're going to share some thoughts and ideas.
0:32.0	I think they're going to go against the grain
0:34.0	of what a lot of folks out there have been taught
0:36.2	about the best way to approach getting out of debt,
0:38.9	getting your debt paid off, knocking it out,
0:40.6	retiring it, because I think that maybe our opinion
0:43.9	is a little bit different than maybe
0:45.4	a popular opinion out there.
0:46.5	Yeah, there's a lot of information out there.
0:49.0	And before we kind of give you the answer,
0:50.9	because once again, we have loaded this thing up with math,
0:54.7	because I don't like just giving opinions.
0:56.4	I want us to kind of go pull out the Excel spreadsheets.
0:59.4	Let's go deep on this thing.
1:00.8	And let's give it the extra attention
	...

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