Brain Freezes & Budgeting Goals

Michelle Kuehner |

By Michelle Kuehner 

I recently saw a snowball stand at a local event and immediately thought two things: 1) I really needed one, and 2) these are just as satisfying as a debt snowball—where you’re crushing high interest instead of ice. 

Two simple methods—the “debt snowball” and “debt avalanche”—have helped millions claw their way back to financial freedom. Here's how to pick the one that saves you the most money and keeps you motivated. 

 

List Your Debt 

First, begin listing all the bills, credit cards, and loans you have. Include the balance, your minimum monthly payment, and the interest rate. Example:  

  • Credit Card A: $4,500 at 19.9% APR, $120 minimum 
  • Car Loan: $10,000 at 7.2% APR, $250 minimum 
  • Medical Bill: $1,500 at 0% APR (promotional), $50 minimum  

Decide how much more money you can put toward debt each month—for example, $300 in addition to your required payments. 

 

Debt-Snowball: Win Small, Win Often 

With the snowball, you pay the minimum on everything and then apply the additional $300 to the lowest amount first. In our example, that’s the $1,500 medical bill. 

  • Step 1: Pay $50 (min) + $300 (extra) = $350 on the medical bill.
  • Step 2: Once that’s paid off, roll the old $350 into the next smallest debt: the $4,500 credit card. You’d pay $120 + $350 = $470 monthly on that card until it’s gone.
  • Step 3: Finally, you put everything toward the car loan. 

Why it works: Knocking out small balances quickly feels great. That sense of progress keeps you motivated. 

 

Debt-Avalanche: Save on Interest, Save Time 

With the avalanche method, you still pay your minimums, but you apply that extra $300 to the debt with the highest interest rate—here, the 19.9% credit card. 

  • Step 1: Pay $120 + $300 = $420 on Credit Card A until it’s cleared.
  • Step 2: Roll that $420 into the next-highest rate debt: the car loan at 7.2%. You’d then pay $250 + $420 = $670.
  • Step 3: After that, finish with the medical bill, even though it’s 0% APR. 

Why it works: You’re attacking the pricey loans first, so you end up paying less interest overall—and you may clear your total debt a bit faster. 

 

Which One Fits Your Style? 

Motivation: If you need small triumphs to keep going, the snowball's fast successes might be exactly the thing.  

Math-First: The avalanche approach is the way to go if you want to cut down on interest and aren't worried about how long it will take until you see your first payoff. 

 

 Compare The Numbers 

Compare interest totals between the two approaches using a free online calculator or a spreadsheet. You'll see how much the avalanche can save you—and how soon the snowball can provide that psychological boost. 

 

 Stay the Course 

Whichever plan you pick, stick to it. Don’t add new debt—leave those cards in your sock drawer, or better yet, inside of a Ziploc full of water in the freezer. Then celebrate each payoff with a small, budget-friendly reward, like a syrupy shaved iced favorite. Snowballs—frozen and financial—require patience, planning, and may cause a headache (or brain freeze), but both will be well worth it.