Codie Sanchez compares two debt payoff strategies: the avalanche method targets highest-interest debt first and saves the most money, while Dave Ramsey's snowball method pays smallest balances first for quick psychological wins. Pick whichever one you'll actually stick with.
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This is your number one, numero uno, above anything else. Debt will bleed you dry every single month and prevent you from building any real wealth. Get this outta here. So two proven ways to do this. Method one, the avalanche. This is my way. You focus on the highest interest rates first. You make minimum payments on everything else, and you throw every single dollar you make at the highest rate debt until it's gone. Method number two, the snowball. This is from my friend Dave Ramsey. You ignore interest rates entirely and focus on your smallest balance first. Math doesn't love this move, but there's some psychology that says debt payoff is like a psychological game and not just a numbers game. And sometimes that dopamine hit of like closing out an account is exactly what keeps you on track. So totally up to you. I like the go hard method, which probably shocks nobody here. If you've tried and failed to pay off debt before and need some early wins to stay in the game, by the way, go snowball. The best debt payoff method is the one you'll actually stick to.
