Debthunch customer review: Congratulations on debt consolidation


Who is Debthunch? Are you considering a Debthunch loan to put yourself in a credit card hardship plan? It may not be the wisest decision. You may have received a direct mail offer from Debthunch, with 0% low interest offers that promise a little more than they can actually deliver. The unrealistic interest offered to consumers with less than perfect credit is just plain ludicrous.

Debthunch customer review: Bravo for debt consolidation 1

Depending on your spending habits, you could be faced with ever increasing debt. Before things get out of hand and you end up giving up your property, start thinking about ways to get rid of debt. Paying off your debt, however, is no easy task. Speeding up payments is the only effective way to free yourself up. One strategy for paying off your debt this way is the Debt Avalanche Method. Read on to find out how the Debt Avalanche Method works.

How the debt avalanche method works

The debt avalanche method first focuses on paying off the debts with the highest interest rates. For example, if your highest interest rate debt is a credit card balance with an APR (Annual Percentage Rate) of 15%, you target that debt first, while paying off the minimum amount payable for other debts. Any extra money you have is used to pay off the credit card debt with an APR of 15%.

Once that debt is fully paid, you move on to debt with the next highest interest rate. You continue to follow this strategy until all of your debts are paid off. In this way, the higher interest rate debt will quickly collapse as rocks, snow and other debris fall in an avalanche.

What are the pros and cons of Debt Avalanche vs. Debthunch?

The order of debt repayments highlighted in the Debt Avalanche Method saves you hundreds of dollars in interest payments. If you have heavy debts, the technique should also help you pay off your debts much faster than not. These aspects make it the ideal strategy to save time and money.

On top of that, since you get rid of the costliest debt quickly first, the Debt Avalanche Strategy can boost motivation in you to pay off your debt. Knowing that this is the shortest path to achieving debt-free status and that you will save on interest payments, you will feel confident in achieving this goal. Like any option, however, the debt avalanche method has its own drawbacks.

With the debt avalanche method, you will only be paying the minimum, which most borrowers like to do. All the money you have allocated will be used to pay off the highest interest rate debt. This can cause you to lose motivation to make payments, especially if your highest interest rate debt also has the highest balance. Sticking to the strategy can be difficult in this case because you will see little progress. If you skipped a month of payment because of it, the Debt Avalanche method won’t be as effective. You will need a lot of commitment and discipline to stick to the method in a situation like this.

Moreover, the Debt Avalanche Method is also based on the unrealistic assumption that you will have a constant amount of discretionary income that you can use to pay off your debts. This means that an emergency or any major disruption to your monthly budget can destroy the plan.

According to 2018 research that compared the debt avalanche method to the debt snowball method, the former is not the best for those with habitual or motivation issues. If you’re struggling to control your spending habits or quickly become demotivated in the face of tough times, you probably won’t be able to stick to the strategy for long enough. On the other hand, if you don’t have such problems and your top priority is paying off debts as quickly as possible, the debt avalanche method is the best choice, according to the same study.

What type of debt can be dealt with using the debt avalanche method?

However, not all types of debt can be dealt with by the debt avalanche. Some of the types that may be appropriate to target using this method include personal loans, car loans, credit card debt, student loans, and medical bills. Whatever debt you face through an avalanche of debt, you will pay off the highest debt before the others.

Alternative strategies to the debt avalanche

If you think the debt avalanche method isn’t right for you, you have other options. Let’s take a look at a few of them individually:

Debt snowball strategy

This approach involves paying off the debt with the smallest balance first, followed by the next smallest debt, and so on, regardless of the interest rate that applies to each. In other words, you tackle the easy task first. The monthly amount you have allocated to pay off the debt is used to pay off the smallest debt, while paying only the minimum amount on the rest of the debts.

The biggest benefit of the debt snowball method is that you see rapid progress that motivates you. The quick and early gains with paying off the few smaller debts push you to get rid of debt completely.

Debt Consolidation Loan

By acquiring a debt consolidation loan, you consolidate all your debts into a single loan requiring a single monthly payment. The goal is to have a better grip on the elimination of your loan. If you do it right, the interest rate you pay on a single consolidated loan may be lower than the interest rates on multiple debts combined. With just one loan to follow, you may even be able to pay off all of your debts faster than not.

However, while obtaining a debt consolidation loan, you may have to pay some fees. Over the life of the consolidated loan, you might even end up paying more interest. The method also often gives the false feeling that you have more to spend. If you fall for it and increase your spending instead of controlling it, the strategy won’t help you solve your financial problems at all. In fact, your debt burden can get worse.


In short, there is no right or wrong way to eliminate debt. Use your priorities, your ability to control your spending habits, and your motivation to decide which method is best for you. After going through this guide, you should know how the debt avalanche method works and if it’s the right one for you. We also compared it with two other methods that you can choose from.

Use this guide to choose the method that’s best for you. But once you choose a technique, stick to it until your debt is completely gone.


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