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I paid off $50,000 in debt in 18 months using the debt avalanche method and saved $18,000 in interest. Here's the exact strategy that worked.

💰 MY DEBT SITUATION:

Total Debt: $50,000
Timeline: 18 months
Interest Saved: $18,000
Method: Debt Avalanche

Breakdown:
Credit Cards: $7,000 @ 22% APR
Car Loan: $15,000 @ 8% APR
Student Loans: $28,000 @ 6% APR

Monthly Income: $5,000 (after tax)
Available for Debt: $2,000/month (after expenses)

🎯 DEBT AVALANCHE METHOD (Step-by-Step):

STEP 1: List All Debts by Interest Rate (Highest First)

Example Order:
1. Credit Card A: $4,000 @ 24% APR
2. Credit Card B: $3,000 @ 22% APR
3. Car Loan: $15,000 @ 8% APR
4. Student Loan A: $18,000 @ 6.5% APR
5. Student Loan B: $10,000 @ 4.5% APR

STEP 2: Pay Minimum on Everything

Calculate minimums:
Credit Card A: $120/month
Credit Card B: $90/month
Car Loan: $350/month
Student Loan A: $200/month
Student Loan B: $150/month
Total Minimums: $910/month

STEP 3: Attack Highest Rate with ALL Extra Money

Available: $2,000/month
Minimums: $910/month
Extra: $1,090/month → ALL to Credit Card A (24%)!

STEP 4: When Debt #1 is Gone, Snowball to Debt #2

Credit Card A paid off!
Now take that $120 minimum + $1,090 extra = $1,210
Attack Credit Card B (22%)!

Continue this pattern until ALL debt is GONE!

📊 MY 18-MONTH TIMELINE:

MONTH 1-4: Credit Cards ($7,000)
Attacked: $7K @ 22% average
Monthly payment: $2,000 (minimums $210 on others + $1,790 to CCs)
Payoff: 4 months
Interest saved: $1,200 (vs minimum payments)

MONTH 5-10: Car Loan ($15,000)
Attacked: $15K @ 8%
Monthly payment: $2,350 (CC payments now added!)
Previous $1,790 + $350 minimum = $2,140 to car
Payoff: 6 months
Interest saved: $2,100

MONTH 11-18: Student Loans ($28,000)
Attacked: $28K @ 6% average
Monthly payment: $2,700 (all previous payments!)
$2,140 (from car) + $350 (student minimums) = $2,490 to student loans
Plus extra $210 from CC minimums gone
Payoff: 8 months
Interest saved: $4,700

Total Time: 18 months
Total Paid: $50,000
Interest Saved: $18,000!

💡 AVALANCHE vs SNOWBALL (Which is Better?):

DEBT AVALANCHE (Math Optimal):
✅ Pay highest INTEREST rate first
✅ Saves the MOST money
✅ Fastest mathematically
❌ Takes longer to see first win
❌ Requires discipline

Example: My method
Interest saved: $18,000

DEBT SNOWBALL (Psychological):
✅ Pay smallest BALANCE first
✅ Quick wins (motivation!)
✅ Builds momentum psychologically
❌ Costs more in interest
❌ Takes longer mathematically

Example: If I did snowball
Interest saved: $14,000 (cost $4K more!)

My Recommendation:
Avalanche if disciplined (save more!)
Snowball if need motivation (quick wins)

🔥 HOW I FOUND $2,000/MONTH FOR DEBT:

Income Increases (+$800/month):
Asked for raise: +$500/month
Side hustle (freelance): +$300/month

Expense Cuts (-$700/month):
Moved to cheaper apartment: -$400/month
Sold car, bought cheaper: -$150/month (payment dropped)
Cut subscriptions: -$50/month
Meal prep vs eating out: -$200/month
No vacations for 18 months: -$100/month average

Intensity: GAZELLE INTENSE!
No restaurants
No new clothes
No entertainment spending
Every dollar to debt
18 months of sacrifice = lifetime of freedom!

💰 INTEREST CALCULATION (Why Avalanche Wins):

Credit Card at 22%:
$7,000 × 0.22 = $1,540/year in interest
Every month it exists = $128.33 wasted!
Kill it fast = save this bleeding!

Car Loan at 8%:
$15,000 × 0.08 = $1,200/year
Monthly waste: $100
Less urgent than CC, but still bad!

Student Loans at 6%:
$28,000 × 0.06 = $1,680/year
Monthly waste: $140
Attack AFTER high-interest debt!

The Math:
If you have $1,000 extra to pay debt:
$1,000 to 22% CC = saves $220/year
$1,000 to 6% student loan = saves $60/year
Difference: $160/year saved by avalanche!

🎯 YOUR DEBT AVALANCHE PLAN:

WEEK 1: AUDIT
□ List ALL debts (every single one)
□ Find interest rates (call if you don't know)
□ Calculate minimum payments
□ Rank by interest rate (highest first)

WEEK 2: SETUP
□ Set up autopay for all minimums (never miss!)
□ Open separate checking for debt payments
□ Calculate extra payment amount
□ Schedule first avalanche payment

WEEK 3-4: ATTACK
□ Make first extra payment to highest rate
□ Cut one major expense
□ Start side hustle (if possible)
□ Track progress (celebrate milestones!)

MONTH 2+: MOMENTUM
□ Every extra dollar to debt
□ Tax refund? Debt.
□ Bonus? Debt.
□ Gift money? Debt.
□ Sell stuff? Debt.

📱 TOOLS TO TRACK PROGRESS:



You can do this. I did it. Thousands have done it.

18 months of intensity = lifetime of freedom!

Follow @FinanceFlow for debt payoff strategies!

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