Attack One Debt at a Time
Personal Finance · Intermediate
Back to Explore Habits
Paying the minimum on all debts and putting every extra dollar toward a single one—using snowball or avalanche—is what truly shortens the road.
Micro-habits to get started
Small actions of a few minutes to start this habit:
List all your debts
Write down every debt with its balance, monthly payment, and APR—even the small ones.
What isn't on the list doesn't have a plan.
15 minPick your target debt
Mark the one with the smallest balance (snowball) or the highest interest rate (avalanche). Keep the rest on minimum payments.
The avalanche saves more interest; the snowball delivers faster wins. The best method is the one you stick with.
2 minAdd extra to your target debt
Put any extra money this month—even a small amount—toward your target debt.
When one debt closes, roll its entire payment into the next: that's how the snowball grows.
5 min