Episode 2: Debt Snowball vs. Debt Avalanche

For so many high-income professionals—lawyers, doctors, business owners, and entrepreneurs—debt feels like a constant shadow. You’ve worked hard, built a strong career, and from the outside it may look like you’re thriving. But behind the scenes, student loans, credit card balances, and car payments can weigh you down like a backpack full of bricks.

In this episode of the LawyerFI Podcast, host Adam B. Cordover, a Florida Collaborative Family Law attorney and financial independence advocate, explores two of the most popular debt repayment strategies: the Debt Snowball and the Debt Avalanche.

Whether you’re motivated by small wins or by maximizing efficiency, understanding these two approaches can help you build a debt-free plan that actually works for you.

Why Paying Off Debt Matters

Debt isn’t just about numbers—it’s about freedom. Carrying high balances influences nearly every life choice you make. It can:

• Delay major milestones like marriage, starting a family, or opening your own firm.

• Keep you stuck in a job you don’t love, simply because the paycheck feels safer than the alternative.

• Weigh on your mental health, creating low-level stress that never seems to go away.

And let’s not forget the math. If you’re paying 20% interest on credit card debt while earning 8% on investments, you’re fighting a losing battle. Tackling debt head-on means freeing up cash flow, reducing stress, and reclaiming the ability to take bold steps forward in life and career.

The Debt Snowball Method

Popularized by Dave Ramsey, the Debt Snowball Method focuses on behavior over math. Here’s how it works:

1. List your debts from smallest to largest balance.

2. Make minimum payments on all but the smallest.

3. Throw every extra dollar at the smallest balance until it’s gone.

4. Roll that payment into the next smallest debt.

   
   

The biggest advantage of the snowball is momentum. Crossing off debts quickly builds confidence and keeps you motivated. It also frees up cash flow and simplifies your financial life earlier in the journey.

The tradeoff? You may end up paying more in interest compared to other methods. But for many, the psychological boost of early wins makes it worth it.

The Debt Avalanche Method

If you’re a “spreadsheet person” who loves efficiency, the Debt Avalanche Method might be your best fit. Instead of focusing on balance size, you:

1. List your debts from highest to lowest interest rate.

2. Pay minimums on all but the highest-interest debt.

3. Direct every extra payment at that high-interest balance.

4. Once it’s gone, move on to the next highest rate.

   
   

This method saves you the most money and often gets you out of debt faster. Watching high-interest balances shrink can be its own kind of motivation, especially if you track how much interest you’re avoiding month after month.

Snowball vs. Avalanche: Which Is Best?

The truth? There’s no one-size-fits-all approach.

• Checklist people love the snowball because it provides quick wins and visible progress.

• Spreadsheet people prefer the avalanche because it guarantees maximum savings.

• Many people—Adam included—find a hybrid approach works best. Start with the debt that gives you either the biggest psychological win or the highest financial payoff, then adjust as you gain momentum.

  
  

The most important rule: The best plan is the one you’ll stick with.

Building Habits for Long-Term Success

No matter which method you choose, lasting debt freedom requires more than a strategy. It requires habits and systems:

• Think like a long-distance runner. Start strong but sustainable, so you don’t burn out.

• Automate payments. Systems beat willpower—set up automatic extra payments toward your target debt.

• Build an emergency fund. Even a small cushion keeps you from falling back into high-interest debt.

• Adopt a debt-free identity. See yourself as someone who refuses to tolerate debt.

• Celebrate milestones. Track your progress and acknowledge each victory along the way.

  
  

As James Clear reminds us in Atomic Habits:

“Every action you take is a vote for the person you want to become.”

Each debt payment is a vote for your debt-free future self.

The Takeaway

Paying off debt isn’t easy, but it’s possible—and deeply rewarding. By choosing the right method for your personality, building sustainable habits, and celebrating progress along the way, you can break free from the weight of debt and move toward true financial independence.

As Adam reminds us:

“Financial independence isn’t just a dream. Now let’s go achieve it.”

Listen to the full episode of the LawyerFI Podcast to hear Adam’s personal debt payoff journey, practical strategies, and tips for building the habits that make freedom sustainable.