What’s The Fastest Way To Pay Off Debt?

Today we’re gonna talk about [BEEP]. What did I say? [BEEP]
Look I know [BEEP] is technically a four-letter word but how are we ever gonna get out
of [BEEP] if we can’t even say the word [BEEP] …DEBT! Ha! Gotcha! Among the subjects that people like to talk about debt ranks right between
toenail fungus and other people’s dreams your brain just doesn’t want to hear it.
And that emotional reaction is partly why it’s so hard to pay it off. But there’s hope! Researchers have figured out a way to
rewire your brain into taking this monster head-on. Not only can it save
your finances it can teach you a lot about how your brain works
and maybe in the future you won’t have to be afraid of the word [BEEP]. Oh, come on! The average debt holder in America
currently holds about $8,000 in credit card debt over three cards! $26,000 in student loans another $10,000 in car loans. That’s a lot
for one person to manage and they all have different interest rates, terms and
loan balances. In short it’s a bit of a confusing mess. So how do we get started? First things first you’ve got to mind the gap. The gap is
the difference between what you make and spend in a month. Without a gap there’s
no money available to make any kind of progress. The two ways to widen your gap
are more income or less spending. Hopefully it’s a mixture of both. Once
you have a gap to work with it’s time to think of strategy. If you ask a
mathematician how to structure your debt they’d probably recommend something like
the Avalanche approach. You list your debts by interest rates with the highest
at the top and the lowest at the bottom. You pay minimums on everything except
the loan with the highest interest rate which gets the biggest part of your gap.
Once that one’s paid off you use the increased cash flow to move down the
hillside like an avalanche. By the time you get to the bottom you save the most
money because you paid as little interest as possible!
It’s mathematical it’s logical and it doesn’t work very well… The Avalanche approach may be mathematically sound but it omits one
important factor… your brain! Humans aren’t robots or Vulcans they’re
emotional beings. They get discouraged, they get overwhelmed, they have trouble
staying on course. It’s the same reason why those debt consolidation plans can
be a bad idea. It may seem like you’re simplifying your life to put all of your
loans into one big basket but what it really does is create a giant
hulking dead monster that feels so intimidating your brain just gives up. So is there a method that works with your brain’s psychology instead of against it?
Well it turns out… Julia we’re in the middle of something here. I know I was
about to put it down but then I cleared a boss stage and upgraded the frosting
on my cupcake cannon I think I can get to the persimmon palace by bedtime! Turns out the same mind-control techniques found in video games can work with your
finances. Game designers strategically dole out positive reinforcements.
Clearing a board of gems, upgrading your loot which floods your brain with
pleasurable dopamine and keeps you playing. At first these rewards are
handed out easily and often to get you hooked and then more spaced out and
difficult as time goes by. It’s really effective and a little bit evil but the
same brain hacking technique can be used to pay off your debt.
It’s called the “Snowball Method”. Instead of listing your debts by interest rate
we list them by balance. Like the Avalanche approach you pay minimums on
all of them except you focus your firepower on the smallest balance. Once
that’s wiped out you roll the extra cash down the hill to the next highest
balance and so on and so on. The snowball method ensures you easy victories early
on to keep you motivated. Every time you cross a debt off your list
it’s like slaying a beast and upgrading your weapon. Your brain will keep
chasing that dopamine fix even as the levels get more challenging. [MUSIC] While someone using the snowball method
will technically pay more overall interest than someone using the
Avalanche approach that assumes that they’re both going to see it through. But
a study by Northwestern University found that snow ballers were much more likely
to actually stick with the plan and successfully eliminate their debt even
if they owed more money than the Avalanchers. Because they gave
themselves that dopamine edge… Oh, [BEEP]! Julia… Sorry. No matter what method you use the
hardest part of getting out of debt is often just starting. And it can get
lonely because, you know, people don’t like to talk about it. But with
determination and planning you can turn debt into something you don’t want to
think about into something you don’t have to . And that’s our two cents! [MUSIC]

100 comments on “What’s The Fastest Way To Pay Off Debt?”

  1. Dpp 1235 says:

    Everyone on this subject leaves out the most important first step. Stop spending!
    1 Stop spending
    2 create a budget
    3 get some cash saved
    4 then attack debt in whatever way that fits you best
    My only advice to add to that would be, NEVER just pay the minimum payments!!!

  2. Adien Toledo says:

    This channel is amazing. It clearly explains the psychology and emotion behind habits and behaviors that drive money decisions in our daily lives.

  3. TheSushiandme says:

    Be like Trump. Negotiate with the IRS and get a few bankruptcies. 🙂

  4. TheSushiandme says:

    Watching this video made me applied for a $50k loan. I want to feel the dopamine.

  5. Stuffed Face says:

    Thanks for this! I didnt know the method i paid my debts has a name — snowball. It got me debt free in no time.. Please make more personal financial videos! I love you guys!!! ❤

  6. Devin Jiminez says:

    Another option , what I do and works for me , is to pay each card off by paying 100% of my paycheck towards the card and still use it. I never use my whole paycheck so "mathematically" it's the fastest if you don't spend that much.

    I also feel I'm smart with my money

  7. the guy in the helmet says:

    The avalanche method is just a sales pitch by 'financial gurus' in ways to manipulate you to buy their books, principles, etc. Of which, you'd never achieve the very goal – paying off debt. Ironically, you spent money hoping to pay off money… vicious cycle?

  8. Tom McMorrow says:

    As someone who holds an Associates in Game Design and a Bachelors degree in finance, I loved all of this.

    I'm also proud to say I holds $0 in debt!

    I just stumbled across your channel and I beg you, please keep this kind of information coming!

  9. Cath HL says:

    Really awesome! I want to share with my students.

  10. suadela87 says:

    Personally, I like talking about debt and paying it off. Other people may not like it, but if I keep it short, they can’t complain too much.

    I started out with $13k at the beginning of this year. I’m now down to $4k and plan on paying it off completely by the end of summer. I. Am. EXCITED!

    Any one else working on paying off their debt? Or aspiring to?

  11. Antony Camillus says:


  12. Lil jr Dawg jr says:

    Dave Ramsey method was easier for me lol.

  13. Genevieve Tran says:

    This needs 1. A side by side comparison of how much more the snowball method will cost. 2. Some mention of organizing politically to cancel crushing debt, raising minimum wage, putting a cap on obscene credit card interest, having universal healthcare OR instituting a universal basic income. If not, this advice is becoming obsolete in this age of income inequality, wage stagnation and rising living costs.

  14. Shaliah Geo says:

    You guys are just so awesome 😭 I love all your videos, they inform and inspire me to make the best money decisions I can as I navigate my post grad financial situation. Wishing y’all happiness, health, and wealth! 😊💖💵

  15. Leo Jimenez says:

    Dat porn stache tho

  16. saloni pattnaik says:

    She's wearing a KURTA????! Never saw any non Indian YouTuber ever wear a KURTA! I feel so happy 🙂

  17. Wild pear running 1 says:

    Best way to pay off debt is not have debt intelligence 100

  18. Nihal loving cars says:

    After watching so many "2 cents" videos I gonna be millionaire

  19. Richard Sanchez says:

    I love talking about debt. Particularly how little of it I have.

  20. KK Stache says:

    Video explains only Credit Card debt, for Mortgage Debt? Well keep refinancing when the rate gets lower or pay off the principal and interest if you win a lottery.

  21. AxelQC says:

    With the snowball method, that 22% interest loan is going to grow so fast you will never get rid of it while pursuing that 0% interest loan.

    Instead of snowballing, you'd be far better off consolidating into a lower interest loan.

  22. mycollegeshirt says:

    Can we just say that bad game designers do this, because it's not something we respect

  23. muttr says:

    set them big tittays free. yoooj jugs

  24. jackendy cherenfant says:

    Thank you very much – this is my first time here.

  25. summer2011leggo says:

    I love your videos you two! Have you heard of the Changed App or one similar to it? It allows student loan holders to use the change they already spend on every day purchase to put towards paying student loans. I’ve paid $100 using it already! I’m not sponsored btw.

  26. Princess says:

    Omg like dave Ramsey's approach awesome ! Plus it really works! Im almost done ❤

  27. Travis says:

    I paid all my debt off, for a better credit score…but once I paid it off, not much credit score difference, I realized just make more money the credit comes when you have more spending power and build your credit.

  28. rmt3589 says:

    Why would you hope for a mixture of both?! Being capable of widening the gap purely with an increased income is obviously better!

  29. sickid41 says:

    I am 300000 debt in medical debt

  30. Raymond Whitehouse says:

    You guys should do UK 🇬🇧 guys you'd be awesome 👍

  31. Nyl Nyl says:

    After an accident I ran into debts , little little monsters compounding into a stampede of bullies…

    Unknowingly i was using , The snow ball approach, but knowingly Increasing my income and frugal living has been helpful… 1-2 months left And everything will be settled… 48 months of ups and downs really gives mental fatigue

  32. David Z says:

    Hearing that *BEEP is also funny when sensored fills you with determination.

  33. SoulKrusheR says:

    Fastest way to get out of debt is to not get into one. Simple, don't buy what you can't afford.

  34. D says:

    These guys are like the modern age Body break! lol I mean the guy has even got a stash.

  35. Basquiat says:

    Soooo, i did the reverse snowball effect by by minimum payment instead of total balance. Highest minimum payment got paid first with an extra payment on it, then the smaller ones. I don’t have a lot of debt so this reverse snowball also was aligned as the most rewarding to me to pay off vs the least rewarding. Once I paid off my car, I was so happy and everything else after that was easy because none of my other debt was as expensive per month as my car note. Then I could hit my next two debts simultaneously and be done in a year.

  36. fuckfannyfiddlefart says:

    Humans are to intestinal to pay off debt logically so have to use a less efficient method to her there and yet we still think capitalism is reasonable though it is based on the idea of rational actors which clearly isn't reality!!

  37. Nah says:

    What was yalls majors in college?

  38. fireflocs says:

    You are making a LOT of assumptions about my brain.

  39. Emanuel Mouratidis says:

    now im confused as to which of my two debts to pay first…
    my credit card has $1500 to go..
    my car loan has$14000 to go..
    my tax return is coming soon and ill be getting around $2000 plus a $1000 i have in savings..
    the 1000 is for my credit card..
    and the tax return for my car loan..

  40. sah bear says:

    I love this

  41. Václav Bouček says:

    Hi all
    It could be horrible approach but debts are also different in accessibility of reuse. For example if you repay your credit card you can easilly use it if you need it. If you repay your bank loan it will not be so easy to reuse that. There are advices that you should have 1-5 wages as a pillow accessible in case of emergency. So if you are paying your student debt you should use part of gap to make or maintain that pillar but if you are repaing credit card you can use whole gap for it and use the credit card money in case of emergency. What do you think about that?

  42. Zaki Sahlani says:

    thanx guys…

  43. Artistic Space says:

    I was wondering about your wifes dress is it reminds me of my moms "Disdasha" its a common clothing item thats worn in Egypt or the Middle East by both men and Women (Im half Egyptian btw which is why I ask.)

  44. Idalia Lumbreros says:

    Why is there not a mention of gathering all credit cards and calling each card and seeing if they will work with you to lower interest and pay down cards quicker?

  45. mina malcom says:

    I was in a serious debt and don't know how to pay it off not until i saw a comment about a great hacker and i try him and he help me pay off my debt free contact him +1 256 667 0055 he can help.

  46. Mina Malcolm says:

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  47. Arief Listyan says:

    I seriously love you two!! keep up the good work!!

  48. bedheadboy says:

    What happens to debt when someone does?

  49. COMBS AFC says:

    You guys are absolutely Brilliant together..!!
    Keep up the consistency with the channel…!!

  50. Kris P says:

    20 years from now he will regret that mustache.

  51. TIME ATTACK says:

    U Don't get it in the first place

  52. krishnaa balaji says:

    Oh dang it!

  53. S says:

    Thank you. I will start to beat my debt… my game now.

  54. Van says:

    Toenail fungus, debt, other people's dreams, gee thats all I talk about… On first dates.

  55. Mx Mx says:

    Don't use credit, that's the fastest way.

  56. Jan Michael Pol says:

    Worthy content

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  58. Braulio Cuevas says:

    Underrated channel. Keep the amazing job guys!

  59. Opal Sky says:


  60. TechSpectrum says:

    I been doing this since the beginning and why I always narrow down my debt to one or two cards, I never stress over what I owe cause I work the lowest down easy.

  61. RAVI kumar says:

    you two are delivering great things with 2 cents

  62. Ben Hendricks says:

    If it helps the normals, I say go for it. Me, I’ll stick to logic.

  63. Jason Lee says:

    I feel you just shouldn’t take so many loans first off. If you can’t afford them all don’t buy them all, take one loan at a time, pay it off as fast as you can, then you can take another. This can save most amount of money and still work with your psychology theory.

  64. LookingToChangeTheWorld says:

    “They’re emotional beings”

    You all lost me there. So many of your videos revolve around people being emotional, therefore unable to follow the best logic when it comes to finances. I find that to be utterly confusing and not relatable.

  65. João Mendonça says:

    I am glad I am not american

  66. Michael lee Stevens says:


  67. Joe Barwick says:

    Been debt free is so glad I just paid off my student loan debt with the help of Masterfixer!!! Masterfixer was a great discovery for me!! And they also offer a powerful support in making extra money apart from paycheck and that has helped me a long way…. You can contact Masterfixer on Gmail
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  68. Antonio Frederick says:

    I like this approach

  69. Elizabeth Stein says:

    I regularly talk about debt with my significant other. How much is left, what was paid, which loan to put extra money toward, ect.

  70. Anime And More says:


  71. Calisa Hardy says:

    ❄❄ Snowballing my way to freedom!!❄❄

  72. Nikeiya Ashanté says:

    Love that you guys use diversity in your animations 👍🏽

  73. Ramiro Martinez says:

    Good video but whos the chic??? Cuz damn she's hot

  74. alex Cooper says:

    I say dont pay down debt if trump and Congress and the us goverment can go trillions in dollars why can't Americas hmm

  75. Red Paris says:

    Or just you know… Don't get debt 😂

  76. Clayton Moore says:

    Is this guy trying to look like little finger intentionally?

  77. Chris Mas says:

    I've said it before but I freaking love these two! And wow, the production value in this video is off the charts! I know it takes an extraordinary amount of time and effort to make these, but the impact they have on those people you help is immeasurable..

  78. Cal Commercial Insurance says:

    Getting into debt is almost never smart (save maybe a mortgage or a car payment on a 5-year-old car). So if someone has a lot of debt, they were not using intelligent behavior to get into that situation. So it would reason, the road out of debt may also not necessarily be the most intelligent route.

    The avalanche method is by far more intelligent than the snowball method. However, the type of person who would be calculating enough to know this would probably also be smart enough to not get into debt in the first place. For that reason, this ceases to become an exercise in math and merely an exercise in psychology. And for that reason, the snowball method is better.

  79. Paul Berg says:

    I do not have debt but thanks

  80. Orneno W says:

    Off topic but am I the only one who actually enjoys hearing about other people's dreams? I didn't know this was such a taboo topic lol

  81. Lesbian Amazon Sister says:

    Thank you for talking about the different strategies to paying off debt! 😁

  82. Marcus Taylor says:

    I have a loan I used to buy my house outright (not mortgage, personal), and car finance used to buy my car brand new (never again).

    The house needs renovating but I’m happy to rough it until I pay the debts first, leaving an avalanche of income to modernise the home.

    I’m glad to know I’m more logical than emotional, as I’m saving to pay the personal loan off first, which is the larger of the two), to get the best early settlement.

    Then paying the car will be be a cakewalk.

  83. Wyatt Taylor says:

    Avalanche approach > snowball approach. Don’t be an idiot. Pay the high interest loans first.

  84. Heather B says:

    "$26,000 student loan debt", 😂

  85. Dalion Flucas says:

    really hoping they do a video on credit cards in detail. A big thing in my generation

  86. LBC Santiago says:

    What about both ? ¿? One month you do one and the next you do the other. So you're working on the big interested and the small quick reward. You make the quick reward abit less often enough but it still seems to get it to keep you on task.

  87. QajsProductions says:

    Gotta love when the gap is negative lol…

  88. n2201 says:

    Smaller loans have lower amounts

  89. Aaron Landry says:

    You could always just use the Avalanche method and not back out of it. Push through with it and you’ll have to pay less. Just don’t give up because it seems tough

  90. Bruce James says:

    Thanks to Hacker [email protected] he clear off my Credit Card debt of $15,000 and clear off my Bankruptcy he his Real and Legit I recommend him

  91. BMW 117 says:

    Also because it motivates you and it’s fun it causes you to work more and want to cut your budget more thus actually making the snowball better mathematically. Also I can’t believe no one talks about the cash flow aspect. With the snowball it increases your cash flow with having fewer payments faster so you can cover emergencies with cash and not debt during your journey so you won’t get discouraged and also show you hey look I’m paying off debt and when something happened I didn’t rely on debt like before I can take care of it with cash. Just pause your snowball and pay minimums and use the cash flow difference to cover it plus your small EF as Dave Ramsey teaches.

  92. BMW 117 says:

    The debt snowball is def the best but I’m surprised they didn’t talk about the debt tsunami method where you pay off your debts in order of their emotional impact. Like if you owe a family member if it’s causes tension and so on depending on one’s situation. So surprised they didn’t.

  93. Ricardo Charriez says:

    You are both so awesome for creating this. The tools you are both sharing is empowering. Thank you from the heart!.

  94. Eric D says:

    There is an even faster way: Chapter 7!

  95. Mark Angelot says:

    Oh son of a d*bt! I just d*bting dropped my motherd*bting croissant!

  96. Dustin says:


  97. cwil3598 says:

    I'm using the avalanche with my student loans.. it works because they actually show the combined interest rate of all loans so I get to see my interest rate go down

  98. dennis wayne says:

    Johncorey102 on Instagram got the best hack service.. He clear off my credit loan and increase my credit score.. Life is so sweet, am debt free, I appreciate you man !!!

  99. David Griffiths says:

    Excellent video. Clear, concise and nuanced.

  100. Ace Anthony says:

    I can honestly say this video helped. Thank you!!

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