Debt Snowball vs. Debt Avalanche: Which Debt Payoff Method Is Best?

The debt snowball and debt avalanche are two of the most popular methods for paying off debt.When you first start paying off debt, the most important thing is to have a plan. Without a plan, paying off debt can seem like a daunting task, which will quickly deflate any motivation you have to, you know, actually pay off debt.Having a plan can help you realize that debt is not forever and that it's possible to be debt free. So often, debt feels like a lifetime sentence, but it doesn’t have to be.As you explore the different types of debt pay-off plans, the debate between the debt snowball vs. debt avalanche is bound to come into play. Each side of the debate makes strong points for their favorite debt repayment strategy. But, which is the best debt payoff method? Let’s take a closer look at how these two strategies compare.

It’s that time of year when we look back on what we have and haven’t accomplished and decide what to tackle in the second half of the year. Even though we're in extraordinary times, most people will still have getting out of debt and building wealth as top goals.If eliminating some of your debt while simultaneously improving other parts of your financial life are among your goals, this post is for you. It’s time to take back control and kick your debt to the curb.It can sound like paying off large amounts of debt in a short period of time is impossible - but it's not! You can even pay off $10,000 in debt in just one year. Whether you have student loan debt or credit card debt, there are options.Here’s how you can pay off $10,000 in debt in one year.

Can you imagine a life where you didn’t have to work every day? Instead of needing to work you could work because you wanted to or, you could choose not to work because you wanted to. How? By building a passive income that allows you to make $50,000 per year without working!Conventional wisdom tells you that the path you’re supposed to live looks like this:Go to CollegeGet a Good JobGet MarriedTake out a loan for school, your wedding, a car, furniture, a houseWork hard for 30+ years to pay off all the debt you accumulatedMaybe you’ll have enough to retire and then again, maybe notThe truth is that there IS another way to live. You don’t have to go the traditional route. After all, you are the one in control of your life. You can do anything you want.Isn’t that a freeing thought? To know that you’re in the driver’s seat of your own life? For me it is.One thing that has been on my mind a lot, and that I have begun to work toward, is creating passive income so that my limited time isn’t constantly being exchanged for money. And because I’ve always had a fascination with passive income I’ve really been drilling down on it lately and not only learning more, but taking action.I think most people could happily live on $50,000 per year (provided they had no debt) so I thought it would be a good idea for you and I to explore some ways to make $50,000 per year without working.

When your student loans are discharged due to disability, you may be limited in whether you can work or go to school for a period of time. Otherwise, your student loans may be reinstated.This can be an especially difficult issue to navigate if your loans are discharged while you're attending school, or plan to. And it can happen even if you never planned on asking for a disability discharge.Here's what to know about disability discharge, and how to navigate your choices if your loans are automatically forgiven.

The Education Department’s latest court-ordered status update shows some progress on one front of the student loan system — and continued delays on another.In a court filing submitted January 14 (PDF File), the department detailed activity from December 1 through December 31, 2025, offering the clearest picture yet of how repayment and forgiveness systems are functioning after months of disruption tied to litigation and a government shutdown.The report was filed in federal court as part of a lawsuit brought by the American Federation of Teachers, which alleges widespread delays in student loan processing.

As federal student loan collections resume, millions of borrowers who fell behind during the pandemic-era pause are again facing wage garnishment, tax refund seizures, and damaged credit. For borrowers already in default, the path back to good standing matters more than ever.One option stands out for many: student loan rehabilitation, a program that allows borrowers to remove the default from their federal loans (and credit report) after a series of on-time payments. Compared with student loan consolidation, rehabilitation can offer long-term credit benefits, but it also comes with strict rules and timelines that borrowers need to understand before enrolling.

When Congress passed the One Big Beautiful Bill Act, it changed a central feature of how graduate education in the United States is financed. For nearly two decades, federal policy allowed graduate students to borrow up to the full cost of attendance through the Graduate PLUS loan program. That option will end in June 2026.A new report from the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (PDF File) offers one of the clearest pictures yet of what that change could mean for students, families, and lenders.The analysis finds that millions of future graduate students may face a new financing gap — and that private lenders may not be ready or willing to fill it.

Curious how to become a billionaire? It's a question that got me thinking...Earlier this year, I was browsing social media and came across an interesting post. Someone asked a pointed question, which seemed particularly relevant as I was in Las Vegas at the time. “What do you need to do to become a billionaire?”With all of my personal finance and business knowledge, I began to ponder what my top advice would be. I came up with two answers pretty quickly. Here are my thoughts on how to become a billionaire.

The thought of going back to business school appeals to those who want to boost their income and advance in their career. However, business school can cost anywhere from $20,000 to $150,000 per year, so it is critical that the benefits of business school will outweigh the costs. Even the average cost of $60,000 is too expensive to "find yourself".If you're thinking about going to business school to get your MBA, you should do so with specific purpose and be working to realize specific benefits. You need to have a specific ROI on the investment in your education.Is going to business school and getting an MBA worth it? Maybe.I received my MBA and I can honestly tell you that it was only worth it because it was partially-paid for by my employer. The true out-of-pocket cost of $80,000 would probably not have been worth it.With that being said, these are the questions that you should answer before pursuing an MBA.

Is college worth it? The answer depends on how much you spend. That's it. If you spend too much on college, it's not worth it because your lifetime earnings will never recoup the cost you spent so early in life.While the thought of incurring student loan debt makes many prospective students reconsider pursuing post-secondary education, the impact of a degree can still outpace the pain of loan debt on future financial well-being as long as the amount is minimized.A college degree can represent a sound investment in your future earnings. The financial return over a lifetime can make an undergraduate education a good investment - but only if you don't spend too much for it. Yes, college graduates, on average, earn 84% more over their lifetimes compared to just high school graduates.But what if your career earnings are only $400,000 more than if you didn't go to college, and you spent $100,000 in total on college? Making that extra $300,000 over 40 years of working was a really poor use of that original $100,000. That $100,000 would have grown to over $1,000,000 over that same 40 years if you never spent it on education...But on the flip side, if you only spend $20,000 in total on college, and earn an extra $400,000 over your lifetime, now, that investment is worthwhile. You basically have doubled your future potential earnings ($20,000 would only grow to $200,000 normally - but your education grew it to $400,000).