Loan repayment strategies you should know about


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Paying off debt is not always a very easy task. It might be even harder if you have no strategy to hasten your payments. Today I want to introduce you to these two distinct strategies to settle your outstanding payments. The debt avalanche method and the debt snowball method.

While both are great strategies to get rid of debt, one method might be easier for you to stick to than the other depending on your alleged financial goals. Let’s go ahead and look at each approach in-depth, cover the pros and cons of the debt snowball and the debt avalanche debt repayment methods.

Debt snowball method

In the debt snowball method you pay your debts starting from the smallest debt first then you proceed to pay off the bigger one. This should ideally happen despite the interest rate of the respective loans.

This can make the debt snowball method more expensive especially because you start by paying off smaller loans it could result to you paying more interest over time.

 The debt snowball method is however said to yield quicker results and that can be highly motivating.


  • Motivates you by settling debts fast
  • Easier to implement


  • Incurs more interest-makes it more expensive.
  • Might take longer to become completely debt-free

Debt Avalanche method

In the debt avalanche method, you pay down your debt prioritizing on the one with the highest interest rate. You then proceed to pay the others will lower interest rates regardless of the balance.

The advantage with the debt avalanche method you can end up paying less interest over time. It’s good to note the debt avalanche method basically involves making minimum payments on all debt, then using any extra funds to pay off the debt with the highest interest rate.


  • Reduces the amount of interest you pay
  • Reduces the amount of time it takes to get out of debt


  • Takes more discipline and commitment to pull off
  • Requires continuous amount of discretionary income

Key Takeaway

It’s good to note that both methods require that you list out all your debts andmake minimum payments on all of them but make more payment on one of them depending on the strategy you choose. The goal is to wipe out one first then proceed to the next one.

That said mine is to wish you all the best on your debt repayment journey. If you find this article informative kindly subscribe below for more educative content. Thank you and God bless.


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