Pick Your Battle Plan
There are two proven methods to tackle debt. Both work! The best one is the one you'll actually stick with.
Method 1: The Snowball
Gain momentum with quick wins.
How it works:
- List all your debts from the smallest balance to the largest.
- Pay the minimum amount on all debts, except the smallest one.
- Throw every extra rupee you have at that smallest debt until it's gone.
- Once it's paid off, take all the money you were paying on it and add it to the payment for the next smallest debt.
- Repeat! Your payment 'snowballs' and gets bigger with each debt you eliminate.
Who it's best for:
People who need to see progress to stay motivated. Those quick wins at the beginning feel great and give you the confidence to keep going.
Method 2: The Avalanche
Save the most money on interest.
How it works:
- List all your debts from the highest interest rate to the lowest.
- Pay the minimum amount on all debts, except the one with the highest interest rate.
- Throw every extra rupee you have at that high-interest debt until it's gone.
- Once it's paid off, take all the money you were paying on it and add it to the payment for the debt with the next highest interest rate.
- Repeat! You're knocking out the most expensive debts first.
Who it's best for:
People who are driven by numbers. This method will get you out of debt faster and save you the most money in the long run.
Which plan is right for you?
What would motivate you MORE on your debt-free journey?