Debt Avalanche or Snowball?
When planning to buy a home, one of the biggest hurdles can be debt. But did you know the way you pay off debt can actually improve your credit faster? In this post, we’ll help you decide between the avalanche and snowball payoff methods.
The avalanche method focuses on paying down the highest-interest debt first, saving you money over time. The snowball method tackles the smallest debts first, helping you gain momentum and confidence. Both work but the best choice depends on your financial behavior and emotional motivation.
Lenders look closely at your debt-to-income ratio (DTI) and how well you manage existing debt. Choosing a payoff strategy that works for you improves your score and your chances of qualifying for a mortgage.
Whichever method you choose, taking control of your debt puts you in the driver’s seat for homeownership. Start small, stay consistent, and build the financial habits that will get you home.
