The Avalanche Method: A Proven Path to Debt-Free Freedom

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February 24, 2025

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How We Became Debt-Free Using the Avalanche Method

Becoming debt-free is one of the most empowering financial moves you can make. We used the avalanche method to pay off nearly $70,000 in debt, allowing us to take control of our financial future and live life on our own terms. In this post, we’ll share exactly how we did it, the sacrifices we made, and how you can apply the same strategy to your own journey toward financial freedom. Disclaimer: I am not a financial expert, and this is not financial advice. This is simply what worked for our lives and situation.

TL;DR

Debt is a financial burden that limits freedom and options.
We paid off $70,000 in debt using the avalanche method—starting with the highest interest rates first.
Cutting expenses, selling unnecessary assets, and changing spending habits were key to success.
Financial freedom isn’t about money—it’s about having control over your choices.
Staying debt-free requires discipline, savings, and avoiding lifestyle creep.

Breaking Free from Debt with the Avalanche Method

Debt limits your freedom and adds stress. It limits your choices, adds stress, and prevents you from achieving financial independence. Owing money means creditors control your life. For us, getting out of debt was a step toward freedom.

At one point, we had two mortgages, a car loan, a boat loan, and nearly $70,000 in credit card debt. We moved back to Montana and took a pay cut. Our spending habits didn’t adjust fast enough, so we felt financial strain. We realized we needed to make serious sacrifices to regain control.

Using the Avalanche Method to Pay Off Debt Smarter

There are two main strategies to pay off debt:

Snowball Method – Pay off the smallest debt first for quick wins.
Avalanche Method – Pay off the highest interest rate first to save the most money.

We chose the avalanche method because interest is money you’re just throwing away. We:

Listed all our debts by interest rate.
Paid minimums on everything except the highest-rate debt.
Threw every extra dollar at the highest-rate debt until it was gone.
Repeated the process until we were completely debt-free.

This method helped us save thousands in interest and clear our debt faster.

Why the Avalanche Method is the Best Debt Payoff Strategy

While the snowball method provides small psychological wins, the avalanche method saves the most money over time. Interest rates can eat away at financial stability, making it harder to climb out of debt. By eliminating high-interest debts first, we maximized our savings and saw faster long-term results.

Sacrifices We Made While Using the Avalanche Method

Paying off debt forced us to change our lifestyle. We had to decide between wants vs. needs and make tough choices:

Sold unnecessary assets – We sold our boat, an old Bronco 2, and even a hot tub. The hot tub alone was costing us $50/month in electricity!
Cut spending – No eating out, no impulse purchases, no unnecessary upgrades, and no gifts to each other for holidays, birthdays, and our anniversary.
Tracked progress – Seeing our debt shrink kept us motivated, even when it felt slow.
Built an emergency fund – Even small savings helped prevent new debt when unexpected expenses hit.

How the Avalanche Method Led Us to Financial Freedom

We worked hard for 10 years to become debt-free. The middle of the journey was the hardest—progress felt slow, and sacrifices weren’t always easy. But once we paid off a major chunk of debt, momentum kicked in.

After our credit cards were gone, we tackled:

The car loan – Paid off six months early.
The mortgage – Attacked it aggressively and paid it off completely.

Now, we own our home, have no debt, and our only expenses are utilities and taxes. We paid our first property tax check ourselves. That experience opened our eyes to financial responsibility. It made us more invested in financial and political decisions.

Staying Debt-Free After Using the Avalanche Method

We used the Debt Reduction Calculator from Vertex 42 to manage our debt-free journey. This tool helped us track our progress and stay motivated along the way. And Best of all… it’s free if you are only tracking 10 or less creditors.

Paying off debt is only half the battle. Staying disciplined keeps you debt-free. Here’s how we maintain financial independence:

Live below your means – We don’t inflate our lifestyle when income increases.
Save before spending – We focus on needs before wants.
Keep an emergency fund – We aim for a full year of paychecks saved, not just a few months of expenses.
Avoid lifestyle creep – Just because we can afford something doesn’t mean we buy it.
Invest wisely – Growing our savings and making smart financial decisions ensures long-term stability.

FAQ: How the Avalanche Method Helps You Become Debt-Free

What is the avalanche method of paying off debt?
The avalanche method prioritizes paying off debts with the highest interest rates first, minimizing the total interest paid over time. It’s the most cost-effective way to become debt-free.

How long does it take to become debt-free using the avalanche method?
It depends on your total debt, income, and how much extra you can pay each month. For us, it took 10 years to pay off everything, but some people can do it in 2-5 years with aggressive payments.

What’s the difference between the snowball method and the avalanche method?
The snowball method pays off the smallest debt first for quick motivation, while the avalanche method saves more money by focusing on high-interest debts first.

Should I build an emergency fund before paying off debt?
Yes, having at least $1,000 in savings helps cover unexpected expenses without going further into debt. After that, focus on debt repayment.

How can I stay debt-free after paying everything off?
Live below your means, save for future expenses, avoid lifestyle inflation, and continue tracking your finances to prevent new debt from piling up.

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Original Content by The Rogue Banshee / My Rogue Solutions LLC.
Credit: Jason Schaller
Email: jschaller@trb.fyi

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