Crush Your Debt: 3 Simple Strategies to Get Debt-Free Faster
- Remin Francis I R
- Nov 5
- 4 min read
Feeling weighed down by debt? You’re not alone. Between the total amount you owe and the never-ending interest payments, it can feel like a huge mountain to climb. But the good news is, you can conquer that mountain. All you need is a plan.
The key to getting out of debt isn't just about making payments; it's about making them strategically. Let's break down three popular and proven methods to help you pay off your debt faster and take back control of your finances.
To make things clear, let's use the same example for all three strategies. Imagine you have the following four debts:
Credit Card: ₹30,000 (at a very high 42% interest)
Car Loan: ₹1,00,000 (at 12% interest)
Personal Loan: ₹1,20,000 (at 21% interest)
Housing Loan: ₹15,00,000 (at 8% interest)
Now, let’s see how each strategy would tackle this.
Strategy 1: The Avalanche Method
Attack the debt with the highest interest rate first, no matter the balance.
The Avalanche method is the most logical and cost-effective way to pay off debt. Why? High-interest loans cost you the most money over time. By eliminating them first, you save the maximum amount on interest payments.
How it Works:
List all your debts and their interest rates.
Make the minimum payment on all your debts.
Put every extra rupee you can spare towards the debt with the highest interest rate.
Once that debt is paid off, take all the money you were paying on it (the minimum payment + the extra) and throw it at the debt with the next-highest interest rate.
Repeat until you're debt-free!
Using our example, the Avalanche order would be:
Credit Card (42% interest)
Personal Loan (21% interest)
Car Loan (12% interest)
Housing Loan (8% interest)
People who are motivated by numbers and want to save the most money in the long run. If you can stay focused without needing quick wins, this method is for you.
Strategy 2: The Snowball Method
Pay off your smallest debt first, regardless of the interest rate.
The Snowball method is all about psychology and motivation. Paying off a loan completely, even a small one, feels like a huge accomplishment. This "quick win" gives you the confidence and momentum to tackle the next, bigger debt. Like a small snowball rolling downhill, your payment power grows as you knock out each loan.
How it Works:
List all your debts by their total amount owed, from smallest to largest.
Make the minimum payment on all your debts.
Put every extra rupee you can spare towards the smallest debt.
Once that small debt is gone, roll the money you were paying on it into the payment for the next-smallest debt.
Keep rolling your payments forward as you clear each debt.
Using our example, the Snowball order would be:
Credit Card (₹30,000 balance)
Car Loan (₹1,00,000 balance)
Personal Loan (₹1,20,000 balance)
Housing Loan (₹15,00,000 balance)
People who need to see progress to stay motivated. If you have many small debts and feel overwhelmed, the quick victories from the Snowball method can be a powerful way to stay on track.
Strategy 3: The Blizzard Method
Get the best of both worlds: a quick win, then maximum savings.
The Blizzard method is a smart hybrid of the Avalanche and Snowball strategies. It gives you the initial motivational boost of the Snowball method and then switches to the money-saving logic of the Avalanche method.
How it Works:
Start by paying off your absolute smallest debt first (the Snowball method). This gives you a quick, motivating win.
Once that first debt is paid off, you immediately switch to the Avalanche method.
Take all the money you were paying on that first debt and attack your loan with the highest interest rate. Continue this way until all your debts are gone.
Using our example, the Blizzard order would be:
Credit Card (smallest balance at ₹30,000). This gives you the motivational win.
Personal Loan (highest remaining interest rate at 21%).
Car Loan (next-highest interest rate at 12%).
Housing Loan (lowest interest rate at 8%).
(In this specific example, the smallest debt also had the highest interest rate, so the first step for all three methods was the same. However, if the car loan was only ₹20,000, the Blizzard method would have you pay that off first before switching to the high-interest credit card.)
People who want a quick dose of motivation to get started, but also want to be financially smart about saving on interest for the long haul.
Which Plan is Right for You?
Choose the Avalanche if you're disciplined, focused on the numbers, and want to pay the least amount of interest possible.
Choose the Snowball if you need early wins to build confidence and stay in the fight against debt.
Choose the Blizzard if you want a balanced approach that gives you a quick victory before getting serious about saving money.
Ultimately, the best strategy is the one you can stick with. Take a few minutes today to list your debts, pick a plan, and start your journey to becoming debt-free.
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