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Paying off debt can feel overwhelming, so it’s no surprise that the “debt snowball” method is so popular. Starting with the smallest balance means you see quick wins—but that approach isn’t always the best for every situation. There are times when focusing on your smallest debts first can hold you back or even cost you more money. Here are seven times when it makes sense to ditch the debt snowball and try a different strategy.

High-Interest Debt Is Costing You More

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If one of your debts has a much higher interest rate than the others, paying it off last may cost you more in the long run. Tackling high-interest accounts first (even if the balance is bigger) saves you money that would otherwise go straight to interest.

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You’re Facing a Financial Emergency

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If you’re dealing with a medical bill, job loss, or any sudden crisis, covering essential expenses and creating a small safety net should come first. Press pause on aggressive debt repayment and focus on staying afloat until the emergency passes.

A Debt Is Headed to Collections

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When you get a warning that a debt will go to collections—or already has—this should jump to the front of your list. Collection accounts can hurt your credit and cause legal trouble. Prioritize these debts, even if they’re not your smallest balance.

A Big Loan Has Flexible Terms

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Sometimes, large loans like student loans or mortgages offer more forgiveness, income-based plans, or payment breaks. If you’re tight on cash right now, take advantage of these options. Focus on debts without any flexibility before paying extra on easier ones.

You’re Missing Minimum Payments

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If you’re struggling to keep up and falling behind on minimums, rethink your plan. Always pay at least the minimum on every account first. Missing payments causes fees and damages your credit score, making things even harder down the road.

You’ll Get a Tax Break on a Loan

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Certain types of loans—like student loans or some business expenses—may offer tax benefits. In some cases, it makes sense to focus on debts that don’t offer a tax perk before paying off ones that do.

The Stress Isn’t Worth the Progress

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Sometimes, seeing progress on tiny balances isn’t enough if the big picture keeps you worried or stressed. If your snowball plan has you sacrificing too much or losing sleep, try a method that fits your mental health—like paying off the highest-interest debt or splitting extra payments between balances.

Choosing What Works for You

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Debt payoff isn’t one-size-fits-all. Life changes, interest rates matter, and mental well-being counts just as much as dollars and cents. The snowball plan gives quick wins, but don’t be afraid to switch things up if another method fits your life better. The best debt strategy is one you can stick with—and one that truly helps you get ahead.

5 Crucial Tips To Pay Off Debt Fast and Live Debt-Free

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Money touches every part of our lives, impacting our decisions, relationships, and mental health. But if you’re in debt, you’re not alone, and you can turn your finances around. Getting out of debt quickly is possible if you take the proper steps. These 5 Habits Will Help You Pay Off Debt Fast and Live Debt-Free