Workshop Five
Module 5: Paying Down Debt Strategically
Snowball vs. Avalanche Rebuild Approach
Not all debts are equal. Some cost you more in interest, and some hurt your credit profile more than others. A smart payoff strategy focuses on impact—not just emotion.
The debt snowball method targets the smallest balances first to build quick wins and motivation. The debt avalanche method targets the highest interest rates first to save the most money.
In many credit rebuild plans, you’ll blend both—attacking high-interest revolving debt while also creating psychological wins that keep you moving.
Your goal is to lower overall balances, reduce utilization, and free up cash flow so your credit and your lifestyle both improve over time.
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