The Best Way to Pay Off Debt Fast (This Actually Works)
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Published 2024-06-12
Are you struggling to pay off debt and wondering which strategy to use?
In this video, we'll break down two popular debt repayment methods: the Debt Snowball and the Debt Avalanche. Discover the major differences between them and find out which one might be best for your financial journey!
Debt Snowball Method:
Focuses on paying off debts starting with the smallest outstanding loan balance first.
This is a psychological approach, designed to give you quick wins to keep you motivated.
Debt Avalanche Method:
Focuses on paying off debts starting with the highest interest rates first.
This is a math-focused approach, aiming to save you the most money in interest over time.
Why These Methods Work
Debt Avalanche:
By targeting the highest APR, you minimize the total interest paid over time.
This method might take longer to see results since it doesn't consider the loan balance, just the interest rate.
Debt Snowball:
By eliminating smaller debts first, you gain a sense of accomplishment that keeps you motivated.
This method helps build momentum, making it easier to stay committed to your debt repayment plan.
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All Comments (21)
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I waited at a red light today, next to a bus with an ad on it for people who needed help with getting out of debt. And it hit me: I have zero debt! I owe nothing to anyone! Oh, what a feeling, what a rush (as that song says). Some people may think this is nuts, but let me tell you, it is a feeling as good as the paid off mortgage. And having large stocks of food allows you to replace those necessities only when they are on sale, so you keep saving money long term. Iβm so glad I took my Investment journey serious and with my financial advisor, I have been to achieve my goals.
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5 years ago at 49 years of age my wife and I up-sized our home and bought into a much nicer area because rates were super low. Our rate is only 2.875% on a 15 year note. But here's the thing...I don't want to be paying on a mortgage into my mid-60s. I plan to ditch work entirely at 60. So while it makes zero financial sense, we've been paying down the mortgage like crazy from day 1. We will be entirely mortgage free in December of this year.
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How to pay off your debt fast? Get a HELOC on your home, yolo it all on GME, then youβll be a multi millionaire so you can pay off your debt AND retire
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I did the free cash flow method (paying off highest payments first regardless of interest or balance) leaving my house and student loans for last. It worked great.
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im debt free but im still watching bcuz i love your videos
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I'm new to investing and have saved up about $120k. Still trying to find my footing and figure out the best strategy.
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What do you call it when you're doing both at the same time? A snowstorm! My highest interest rate debt is my smaller total debt and as they get bigger, the interest decreases. Listening to you has definitely been beneficial!
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I didn't know Tim Tebow had a finance YouTube channel.
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Great Video!
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Thanks for the advice π
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Well said Marko! I lean avalanche but can see arguments for both. Namely cash flow.
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Well said!
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Thank you Marko!
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I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Elizabeth Wesley.
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I have 5 credit cards. Each has a specific use. Gas, groceries, restaurants, all other essentials, anything discretionary. 4 for maximizing cash back, 1 for making it easier to track spending habits.
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My three favorite channels: Marko - WhiteBoard Finance, Stock Brotha, & How Money Works. Make my week complete! π₯ π₯ π₯
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What a great video on how to pay debt faster, thanks for sharing this informative video.
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Another strategy some use is refinancing by taking a larger loan with lower interest to cover multiple high-interest loans they already have
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I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Rose Strayer
