Why most debt payoff plans fail
Most people start by cutting lattes. That’s not where the money is. Real progress comes from restructuring how you attack the debt, not micromanaging $5 purchases. The two methods that actually work are the avalanche and the snowball — and they work for opposite psychological reasons.
The avalanche method (saves the most money)
List every debt you have. Order them from highest interest rate to lowest. Minimum payments on all of them. Every extra dollar goes to the highest-rate debt first. Once it’s gone, roll that payment into the next one. Over 12 months, this approach minimizes total interest paid — often by hundreds of dollars compared to other methods.
The snowball method (works if you need motivation)
Same idea, but order debts from smallest balance to largest. You’ll pay off small accounts faster and feel early wins. The psychological momentum is real — research from Harvard Business Review showed that people using the snowball method were more likely to stay on track. The downside: you pay slightly more in interest over time.
Your month-by-month plan
Months 1–2: Build a $1,000 emergency fund first. Without it, any unexpected expense sends you back to the card.
Months 3–6: Focus 100% of extra payment capacity on your top-priority debt.
Months 7–10: Roll payments forward as accounts close.
Months 11–12: Final push — consider one-time income sources (sell unused items, overtime) to cross the finish line.
The math check
$10,000 ÷ 12 = $834/month. If that’s not currently possible with your income, the target is to find the gap: either reduce fixed expenses (subscriptions, insurance shopping, phone plan) or add one reliable income stream. Even $200/month extra gets you to $10,000 in under 4 years — faster if rates compound less.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.