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  • Writer's picturePatricia Campbell

Crushing Debt: Which is Right for You?

Dealing with debt can be overwhelming and frustrating, but there are effective strategies to help you regain control of your financial future. In this blog post, we will explore two popular debt repayment methods: the Snowball Method and the High-Cost Method. By understanding the principles behind each approach, you can choose the one that aligns best with your goals and financial situation.


The Snowball Method: The Snowball Method is a debt repayment strategy that focuses on building momentum and motivation by targeting your smallest debts first. Here's how it works:

  • List all your debts from smallest to largest, regardless of interest rates.

  • Make minimum payments on all debts except the smallest one.

  • Allocate any extra funds towards paying off the smallest debt aggressively.

  • Once the smallest debt is paid off, roll that payment into the next smallest debt.

  • Repeat the process until all debts are cleared.

The Snowball Method's strength lies in the psychological boost it provides as you quickly eliminate smaller debts. With each paid-off debt, you gain confidence and momentum to tackle larger debts.

The High-Cost Method: The High-Cost Method takes a more financially strategic approach by prioritizing debts with the highest interest rates. Here's how it works:

  • List all your debts from highest to lowest interest rates.

  • Make minimum payments on all debts except the one with the highest interest rate.

  • Allocate any extra funds towards paying off the highest interest rate debt aggressively.

  • Once the highest interest rate debt is paid off, roll that payment into the next highest interest rate debt.

  • Continue the process until all debts are cleared.

The High-Cost Method minimizes the overall interest paid by targeting debts that accrue the most interest. This method can potentially save you more money in the long run and expedite your journey to becoming debt-free.


Choosing the Right Method: Deciding which method is right for you depends on various factors such as your financial goals, debt balances, and personal preferences. Both methods have their merits, and the key is to find the one that resonates with you and keeps you motivated throughout the debt repayment process.


Getting rid of debt is a transformative journey that requires dedication, discipline, and the right strategy. Whether you choose the Snowball Method or the High-Cost Method, the important thing is to take action and commit to becoming debt-free. Remember, every step you take towards financial freedom is a step closer to a more secure and prosperous future.

Take charge of your debt today, and let MyFondi be your trusted companion on your path to financial well-being.













Disclaimer: The information provided in this blog post is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any financial decisions.

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