5 Mistakes to Avoid When Using the Debt Snowball Method

Let’s be honest — debt feels heavy. And if you’re someone who juggles EMIs, credit card bills, and random unexpected expenses, you know exactly what I mean. It’s more than just money — it’s that constant stress, the guilt after a non-essential purchase, the anxiety before bedtime.

That’s where the debt snowball method comes in. It’s simple. It gives quick wins. And for many women — especially in our Lxme community — it actually works. But only if you avoid some common traps.

Whether you’re just starting or deep into your repayment journey, here are five mistakes to avoid when using the debt snowball method.

What Is the Debt Snowball Method?

Line up your debts — not by interest, but by amount. Using the debt snowball method, you throw extra cash at the smallest one while making minimum payments on the rest. Once that’s gone, roll the same payment into the next. Like a snowball rolling down a hill — your payments (and motivation) grow.

But some people argue that it makes more sense to attack the loans with the highest interest rate first. That’s the debt avalanche method — and yes, it saves more money in the long run.

So yeah, that’s the hot topic: debt snowball vs avalanche, or even debt avalanche vs snowball. But more on that in a bit.

At Lxme, we often recommend blending both — a snowball avalanche method. Start small for motivation, then shift to high-interest debt to save money. Let’s call it financial wisdom meets emotional wins.

1. Ignoring High Interest Rates

Yes, wiping out that ₹35,000 loan is a great feeling. But  if your credit card’s piling 36% interest, that quick win might cost you more later. The debt snowball method doesn’t focus on interest, which is why the debt avalanche vs snowball debate matters.

Solution? Combine both. Many Lxme users go for a snowball avalanche strategy — get those tiny victories, then tackle the big interest monsters. That way, you stay motivated and save money too.

2. Skipping an Emergency Fund

Life doesn’t stop while you’re paying off debt. A job loss or a medical emergency can throw your entire plan off if you don’t have a cushion.

So, before you dive into the debt snowball method or even think about debt snowball vs debt avalanche, create an emergency fund. It’s not about luxury — it’s about peace of mind. A buffer keeps your snowball avalanche on track, even in a storm.

3. Forgetting Your Other Loans

You’re so focused on clearing one small debt, you forget to pay the others. Boom — late fees, penalties, and a hit to your credit score.

Whether you’re using the debt snowball method, the debt avalanche, or combining both in a snowball avalanche, minimum payments are non-negotiable. Automate them if you can. Always keep the rest of your debts in the game — they matter too.

4. Thinking It’s All About Math

Here’s the truth: money is emotional.

The debt avalanche may save more in interest, but those big loans can feel endless and demotivating. That’s why the debt snowball method works — it gives you quick wins and emotional fuel.

In the debt snowball vs avalanche debate, remember: it’s not just about numbers. It’s about what keeps you going. Many Lxme women stick to their plan simply because knocking off a ₹45,000 loan made them feel proud. That energy? Irreplaceable.

5. Not Tracking Progress

This might appear insignificant, yet it makes a world of difference. When you witness your loans vanishing single by single, your confidence zooms.

Whatever strategy you use — debt snowball vs debt avalanche, or a snowball avalanche mix — tracking keeps the flame burning. Create a simple table. Refresh it every month. Acknowledge every victory, no matter how small. Tracking is proof that your efforts are working.

Debt snowball vs avalanche — which one wins?

Feature	Debt Snowball	Debt Avalanche
Priority Order	Smallest balance first	Highest interest rate first
Focus	Motivation & quick wins	Long-term interest savings
Best For	Beginners needing momentum	Those disciplined with budgeting
Example Strategy	Pay off ₹35,000 debt first	Pay off 32% interest loan first

So who wins in the debt snowball vs avalanche battle? Truth is — neither. Or both. It depends on you.

If motivation fuels you, start with the debt snowball method. If numbers drive you, go with debt avalanche. Or be like most Lxme women — start with snowball wins and transition into snowball avalanche mode when you’re ready to take on bigger loans.

It’s not about method — it’s about consistency.

Final Thoughts

Debt doesn’t define you. Every payment you make is a step toward freedom.

You will make mistakes. You may overspend. But you’re moving forward, and that’s powerful.

Whether you use the debt snowball method, the debt avalanche, or a mix — what matters is that you begin.

Lxme app, which offers investment plans for women, is here to support you — from tracking tools to expert guidance, and a community of women walking the same journey. Log in, set your goal, and join the movement.

You’ve got this.

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Further read:

• What are Contactless Credit Cards and How does it work?

• 10 Ways to Improve Your CIBIL Score Quickly

• Top 7 Government-Backed Instant Loan Schemes for Women