List Your Debts — Face the Beast
- Team at LSH
- 7 days ago
- 2 min read
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Most people avoid looking at their debts because it feels overwhelming. But avoiding the beast never makes it smaller.
It only makes it stronger. Wealth begins the moment you turn around and face it.
List Every Debt
As Cori Arnold suggests (@iamcoriarnold on Instagram), write down each debt (Point 1 from Threads!). Then add the basics for each debt:
Creditor
Balance
Interest rate
Minimum payment
Due date
That’s it. Five lines per debt. The moment you do this, something powerful shifts: You stop feeling hunted. You become the hunter. Track the debts over time.
The Habit of Facing the Beast
This habit is simple:
Look directly at the thing you fear financially, instead of running from it.
The full article ('Facing the Beast') delves into doing a deeper, not-so-scary audit of your finances. In that article, the debt snowball was highlighted, but the avalanche method below works well too.
When you shine a light on all of your debts:
You reclaim clarity
You reclaim control
You transform fear into a plan
As Morgan Housel reminds us:
“Avoiding what you fear is often the most dangerous move.” Morgan Housel, "The Psychology of Money", 2020.
Facing your financial beast is the first step that unlocks every other wealth habit.
Snowball vs. Avalanche: Choose Your Attack Strategy
Once your debts are listed, the next question is: How will you attack them?
You have two proven methods, the Debt Snowball and the Debt Avalanche.
1. Debt Snowball Method
Pay off the smallest debts first.
Pros:
Quick wins build confidence
Great for people who need motivation early
Cons:
You may pay more in interest overall
2. Debt Avalanche Method
Pay off the highest-interest debts first.
Pros:
Saves the most money on interest
Eliminates the most expensive debt fastest
Cons:
Slower to get “wins”
Motivation can dip early on
Which One Should You Choose?
If you’re driven by emotion, momentum, and small wins → Snowball. This definitely works well as the small wins build up.
If you want to save the most money mathematically → Avalanche. This works better if you're able to stick with and wait for the reward longer, since the first debt that's paid off will probably take longer than the snowball method. But, you'll have more cashflow free once that big interest debt is paid off.
Both work. I've used both of the methods. The best method is the one you’ll stick to and enjoy.
Final Thought: The Beast Shrinks When You Look at It
People who confront their full financial picture — even if it’s messy —graduate from shame to strategy. Debt stops being a fog. It becomes a map. The problem itself offers the solution to its resolution. And once you can see the path, you can walk it.
To your success.
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