Library of Congress Federal Credit Union

Find the Strategy That Works for You

When the economy feels uncertain, carrying debt can feel like carrying a backpack full of rocks uphill, every step forward seems heavier than it should be. That’s why so many people are asking the same question right now: What’s the best way to bury my debt once and for all?

We know there isn’t a one-size-fits-all answer. But, there are two tried-and-true approaches to debt reduction, the SNOWBALL Method and the AVALANCHE Method, plus a few others worth considering. Each can help you make real progress, depending on your personality, habits, and financial goals.

The SNOWBALL Method: Small Wins That Build Momentum

The snowball method focuses on paying off your smallest debts first, regardless of the interest rate. Once you knock out the smallest balance, you roll that payment into the next one, and so on, like a snowball gathering size as it rolls downhill.

EXAMPLE: If you owe $1200 on a store card and $3,000 on a credit card, you’d pay off the $1200 balance first. Once that’s gone, you’d add that payment amount to the credit card payments.

PROS: Quick wins keep you motivated and show visible progress.

CONS: You may end up paying more interest overall compared to other methods.

The AVALANCHE Method: Smarter Math, Bigger Savings

With the avalanche method, you aim straight for the steepest hill: your highest-interest debt. You focus extra payments on the balance costing you the most in interest, while paying minimums on others. Once that’s cleared, you target the next highest-interest debt, and so on.

EXAMPLE: If your $3,000 credit card carries the highest interest rate, you’d focus on that first, while paying minimums on everything else.

PROS: Saves money on interest in the long run. Ideal if you’re motivated by numbers and efficiency.

CONS: Progress can feel slower, since those high-interest balances are often the biggest.

Which Method Should You Choose?

Here’s the truth: the “best” method is the one you’ll stick with.

• If you thrive on momentum and motivation, the SNOWBALL method might be your ally.
• If you’re focused on efficiency and long-term savings, the AVALANCHE method may be the smarter route.

And remember, you don’t have to go it alone. Many of our members use a hybrid approach, tackling one or two small debts for a confidence boost before shifting focus to their high-interest balances.

Turning Uncertainty Into Action

Financial uncertainty can make debt feel even heavier, but having a plan is one of the best antidotes to worry. Whether you choose snowball, avalanche, or a mix of both, the key is consistency. Every payment is progress, and every step takes you closer to financial breathing room.

At LCFCU, we’re here to help you build a stronger financial foundation, no matter what the headlines say.

Ready to get started?

Talk with one of our member representatives about which strategy makes the most sense for you. Together, we’ll find the approach that helps you move forward with confidence.