Snowball, Avalanche, Lump Sum, and Pissed Off: My Honest Review of These Debt Payoff Methods
- Jeannette Fennel
- Apr 28
- 7 min read
I sat across the table from a newer client. I could tell she was stressed and overwhelmed. She fidgeted with her coffee cup and wouldn't quite meet my eyes. I'd seen that look before. It's the look of someone carrying a number they're afraid to even look at.
This client — I’ll call her Katie — came to me with several different types of debt. She wasn't sure what she owed on each one or what the interest rates were. Credit cards, an auto loan, a HELOC, student loans from her master's degree, a personal loan from her mom. We pulled up every statement and faced the numbers together. We learned what each balance was and that her interest rates ranged from zero all the way to 32%.
I pulled out my phone and started adding things up. The Alaska Airlines card. The Nordstrom card. The Pottery Barn card she’d opened when she furnished her home office. The Amazon card. The Home Depot card from a renovation she’d finished over two years ago. The HELOC. The student loans. The auto loan. And the $700 she’d borrowed from her mom and never quite gotten around to paying back.
“All together, you owe $164,000.”
Her face fell. It was the first time she had truly seen the full picture… and it hit her hard. She was devastated realizing her debt had grown to this much without her fully knowing.
“Okay, Katie,” I said. “This is a lot. But with a system, you can make it out the other side. Let’s get organized and look at the different debt payoff methods.”
That moment (watching devastation turn into determination) is why I do this work. So many people are carrying debt they've never fully looked at. And once they do, the first question is always the same: "Jeannette, what order do I pay off my debt?"
I hear it all year long from people who are exhausted, frustrated, and just plain tired of feeling like they can’t get ahead no matter how hard they work.
If that’s you right now, I want you to know: you’re not broken. You need a system.
My husband and I paid off six figures of consumer debt. We mostly used one method and I’ve since coached clients through each of them. So consider this my completely honest, been-there-done-that review of four debt payoff methods out there.
Before we dive in, two quick definitions:
Consumer debt = anything you owe besides your mortgage. Credit cards, student loans, auto loans, personal loans, money you borrowed from your mom. All of it counts.
Emergency fund = money you set aside only for true emergencies, so you stop reaching for the credit card every time life happens. When my husband and I were in payoff mode, we kept about $3,000 in ours (the traditional advice is $1,000, but I sleep better with a little more cushion). This isn’t optional. Without it, you’ll just keep adding to your debt every time something goes sideways. Learn more about emergency funds here.
Okay. Now let’s talk strategy.
Let’s use Katie’s actual situation to walk through each method. Katie has set aside her $1,000 emergency fund and is ready to attack her debt. Here’s the full picture of what she owes:
Student Loans — $27,800 at 6%
Auto Loan — $35,000 at 9%
HELOC — $55,000 at 10%
Nordstrom Credit Card — $2,000 at 32%
Home Depot Credit Card — $8,000 at 29%
Pottery Barn Credit Card — $15,000 at 27%
Amazon Credit Card — $20,000 at 26%
Alaska Airlines Credit Card — $500 at 27%
Money owed to Mom — $700 at 0%
Total: $164,000
Method #1: The Snowball - My personal favorite
How it works: List your debts from smallest to largest balance, ignoring interest rates completely. Make minimum payments on everything, and throw every extra dollar at the smallest debt. Once it’s gone, roll that payment into the next one. Repeat until you’re debt-free.
Katie’s payoff order:
Alaska Airlines Credit Card — $500
Money owed to Mom — $700
Nordstrom Credit Card — $2,000
Home Depot Credit Card — $8,000
Pottery Barn Credit Card — $15,000
Amazon Credit Card — $20,000
Student Loans — $27,800
Auto Loan — $35,000
HELOC — $55,000
My honest take: This is how my husband and I paid off our debt and it’s what I recommended to Katie. The early wins are real. Crossing something off the list (even a small thing) creates momentum on the days when it feels impossible. Knocking out that Alaska Airlines card in the first month? That feeling is addictive in the best possible way. Dave Ramsey is a big proponent of this method, and for good reason: behavior change is hard. The Snowball is designed with your psychology in mind, not just your spreadsheet. The downside is that you’ll pay more in interest over time by ignoring rates. But staying motivated matters more sometimes. A plan you stick to beats a perfect plan you abandon.
Method #2: The Avalanche - The “mathematically correct” choice
How it works: List your debts from highest to lowest interest rate. Make minimum payments on everything and attack the highest-rate debt first. Once it’s paid off, roll that payment to the next one.
Katie’s payoff order:
Nordstrom Credit Card — 32%
Home Depot Credit Card — 29%
Alaska Airlines Credit Card — 27%
Pottery Barn Credit Card — 27%
Amazon Credit Card — 26%
HELOC — 10%
Auto Loan — 9%
Student Loans — 6%
Money owed to Mom — 0%
My honest take: On paper, this is the winner. You pay the least amount of interest overall. But here’s the thing: money is emotional, not just mathematical. Look at Katie’s list: after knocking out the Nordstrom and Home Depot cards, she’d be staring down that Pottery Barn ($15,000) and Amazon ($20,000) balance for a long time before feeling like she made a dent. For some people, that wait can be demoralizing enough that they quit. If you’re highly analytical and motivated by numbers, the Avalanche might be your jam. For everyone else, I’d think carefully before committing to it.
Method #3: The Lump Sum - If you come into money
How it works: You receive a windfall (an inheritance, a bonus, proceeds from selling something) and use it to wipe out your debt all at once.
Katie’s payoff order: All $164,000 of it. Boom.
My honest take: I love the idea of this one, but it comes with a big warning: if you haven’t changed the habits that created the debt in the first place, you will most likely be back in debt within a few months or years. I’ve seen it happen with several people. Katie didn’t open six credit cards overnight. There were patterns and habits that got her there. The lump sum clears the balance sheet, but it doesn’t clear the mindset. Also (and this is important) if you come into a large sum of money, please talk to a CPA and/or a financial advisor before you do anything with it. The tax implications can be significant. You don’t want to wipe out your debt only to owe a chunk to the IRS.
Method #4: The Pissed Off Method - My second favorite
How it works: List your debts by which ones irritate you the most. The credit card company with the terrible customer service? Gone first. The awkward loan from a family member that makes every holiday weird? Pay that back immediately. The student loans you’ve been staring at since grad school? Attack them with everything you’ve got. You make the list. It’s about what gets you fired up.
Katie’s payoff order: Katie is so over the awkward conversations with her mom every time they talk. She’s also done with the Home Depot card. The renovation is long finished and that balance is still haunting her. And honestly? She’s exhausted by her student loan statements showing up every month (a constant reminder of a degree she finished years ago). She decides to start with the Pissed Off method for these three and then finish with the Snowball.
Money owed to Mom — $700
Home Depot Credit Card — $8,000
Student Loans — $27,800 ...then finishes with the Snowball method for the rest.
My honest take: I discovered this method in Erin Skye Kelly’s book Get the Hell Out of Debt and it immediately resonated with me. Money isn’t just numbers. It’s emotion, identity, and relationships. Never having to have another awkward money conversation with her mom at Christmas? Never getting another student loan statement in the mail? For Katie, those wins are worth everything. The downside is similar to the Snowball: you might pay more interest over time. But the dopamine hit of paying off that Home Depot account for good? Priceless.
Which one should you pick?
Honestly, the one you’ll actually stick with. I know that might sound too simple, but it’s the truth I’ve seen play out with clients. All four of these methods work. The only method that fails is the one that felt too hard to maintain.
Our girl Katie chose the Pissed Off method followed by the Snowball. After choosing these two methods, dialing in her monthly budget, and doing some real work around her spending habits, she is closing in on a milestone that once felt impossible: paying off $100,000 of her debt. This same woman who sat across from me, stunned by a number she had never let herself fully see, is now more than halfway to debt-free.
That debt-free life is available to you, just like it becoming available to Katie. No payments. No statements. No creditors. No awkward holiday conversations with your mom. You own everything. You owe nobody. It starts with one decision: picking a method and committing to it.
Your future self will thank you. 💚
➡️ Which of the four methods (Snowball, Avalanche, Lump Sum, or Pissed Off) resonated most with you? Tell me in the comments.
Hi! I’m Jeannette and I help professionals ditch debt without the overwhelm and build wealth without the stress.
📞 Contact me to schedule a FREE 15 minute phone call and start to make a plan with your money.
Friendly reminder: The information shared is for educational purposes only and isn’t a substitute for financial, legal, tax, or mental health advice. Please consult a qualified professional for guidance specific to your situation.
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