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Debt is sadness in money form.

Much like the concept of “bringing balance to the Force” - for every good thing, there has to be something equally bad to even it out. This is what debt is to money.

Once the good times stop rolling, all that’s left is you and your debt. Now you have to pay it off, and there is nothing more fun than spending your hard-earned money on money you already spent.

There are approaches to getting out from under debt. We’re going to help you choose and chart your path forward.

“Good times are when people make debts to pay in bad times.”

— Robert Quinlan

A Snowball’s Chance in…

If you’re like me, you need constant affirmation to feel like a good boy.

If this is the case, then the Snowball method might be for you.

The snowball method plays into the same reward system that excited Pavlov’s dogs when they heard a bell ring. The snowball method says you first pay off the credit cards with the lowest overall balance.

Paying off the lowest overall balance first hopes to get you caught in a manic state of excitement fueled by telling a credit card company to shove it. Closing off one card propels you forward, paying off each card until nothing stands in your way of financial freedom.

For all your other cards, you must maintain the minimum payments and use all your extra funds to pay off the smallest debt as quickly as possible.

Once a debt is paid off and a part of your soul is released back to you, you should roll the money you used for that payment into the next card with the lowest balance.

Much like eating all your vegetables so you can enjoy the tastiest part of your meal, this method can help you create momentum and force you to continue paying off your credit cards instead of buying a Triple Dipper from Chili’s.

AVALANCHE!!!!

Saving money might not have been your priority when you created your debt, but it definitely should be your priority when paying it off.

Avalanches aren’t just for disaster movie blockbusters; they can also help you wipe out your credit card debt. All you have to do is strategically place dynamite on a mountainside to cause a lethal wave of snow and hope it is near the data center where the credit card company stores your personal file.

The Avalanche method requires you to prioritize paying off the debt with the highest interest.

For the rest of your cards, you should only maintain minimum payments. Like the snowball method, you should roll over the amount you paid on a closed account into the next account with the highest interest rate.

The benefit of this method is that you save on interest overall and can also create a faster overall debt payout timeline. It seems like a win/win, so it might be time to get your snowboard and hit up some fresh powder, brah.

But first, you need a CFO

Ok, let’s be real for a moment. You probably don’t have the best idea of what’s going on with your monthly spending. There are a lot of transactions in your accounts; money is coming in and going out; it’s a lot. I get it.

My parents manually balanced their checkbook multiple times a week. That was in the 90’s. It’s 2025, there’s a better way, and it’s automated. It’s called Monarch.

Monarch will track your spending, your assets, and your debts. You can manage it any way you’d like. Budgets? Yes. Recurring charge alerts? Yes. Investments tracked? Yes. Net worth graphs? Absolutely! Dessert? You deserve it for being so organized!

If you want to get your finances in order, this is your next-most urgent task.

Manage your wealth with Monarch.

Start the Snowfall

Before deciding on a method, you should follow the same basic steps to ensure that you pay off your debt effectively.

The first thing you should do is make a list.

Sounds simple enough, but Andrew just scolded me for never making lists for anything. For some reason, I am list-averse, choosing to keep everything I need to do in my head using the spare neurons not being used by my wife, kids, job, and Severance theories. I think I do a pretty great job at it, but the air filters in my HVAC might say otherwise.

Don’t be like me; make a list of any payment information, the total amount owed, minimum monthly payments, and due dates.

Next, you should sort them out accordingly.

After that, you should budget beyond the minimum payment to determine how much extra you can afford to add to your monthly payment of the credit card you decide to pay first. Ensure you budget to maintain the minimum payments on all the other cards you aren’t currently closing out.

Pay Down Party

Whoa! Slow down, tiger.

I know you are ready to let the fun payments begin and become a super responsible financial badass, clearing out your credit card debt. But before you do, you should keep a few things in mind.

Keep an emergency fund: Focus some of your funds into an emergency fund because while being debt-free is great, you need to make sure you have funds on hand to access in case of an emergency.

Stay updated on your current bills: If you are having trouble making payments on your bills on time, starting debt repayment might further complicate your situation. You can call your credit card company to work out options to help avoid late payments, like adjusting your payment due date.

Track your spending: Don’t add more debt as you pay down your current debt. Freeing up room in a credit card can be like switching to elastic-waisted sweatpants and suddenly feeling like you can afford to eat a few more hamburgers. You need to be strict and stick to your budget to avoid putting yourself back in the situation you were trying to escape.

Best approach?

Let’s assume you have $20,000 in debt:

The Avalanche Method costs about $400 less in total interest than the Snowball Method because it prioritizes paying off the higher-interest debt first.

If saving money is your goal—and let’s be honest, it better be —especially if you subscribe to a personal finance newsletter, you should start yodeling now to start an Avalanche.

Money Talks

What IRL business would you create to create an AI-proof stream of revenue?

Let us know your answers so we can feature them in a future newsletter!

Want to start paying down a lower amount?

Turns out, you’re not the only one worried about your debt.

The first rule of running a credit card company is not to lose money. If you declare bankruptcy, they violate their cardinal rule. Which means they’re willing to play ball.

The gambit is simple: you call your credit card company, claim hardship, and ask them to reduce your debt. Interestingly, it almost always works to the tune of a 20-30% reduction.

If you want someone to pull it off for you, SoloSuit can make it happen on your behalf, and they’re pretty awesome at it.

While Lou has actually done this himself (he’s a badass), you don’t have to do it yourself.

End your debt with SoloSettle.

Our Favorite Money Tools

🦋 Monarch - Automatically monitor spending, create budgets, and track your net worth. Categorizes transactions with AI.

💳️ Privacy.com - Virtual credit card numbers per expense. Easily control how much any card can spend and never get overcharged again. Get 1% cash back!

🥧 M1 Finance - Simple, no-fee investing with superpowers. Built from the ground up for long-term investors with high expectations. We use them; they are awesome.

🏠 Fundrise - Invest in Rust Belt and Mid-Western real estate.

🏦 Mercury - The best small business checking account, full stop. We use it for all of our businesses, including my personal checking.

🌵 Lasso - My business. We create tools that help Creators monetize their work.

See the complete list in our Toolbox.

May the cash flow always be in your favor,

Andrew and Lou - the Funny Money team