When your debt gets out of control, it may affect your financial, emotional, and physical health. So, for a better financial future, you need to have a good health and a steady mental state to tackle your debts.

You might have heard about popular debt repayment methods earlier. But, let me tell you about an approach which is quite an old school and less popular, but truly effective. We may call that method the Debt Tsunami.

What is Debt Tsunami?

The Debt Tsunami is a good debt payment method where you can pay off your debts according to the order of their emotional impact. In other words, pay off the debt first that gives you the most mental pain. The method is widely popular due to its origin from the website “Man vs. Debt” (manvsdebt.com). This method is extremely flexible and it can adapt as per the personality of the debtor.

Whatever may be the reason, slash the debt that causes you emotional pain. Once the most painful debt is gone, engage your funds to pay off your next most emotional debt. If no other debt impacts your emotional state, you may any time shift to the snowball or avalanche or any other debt payment method as per your choice.

Before analyzing the principles of a debt tsunami method, let’s review some popular DIY debt elimination strategies.

The two most popular DIY debt repayment methods are as follows:

1 Debt snowball

By using this method, you can pay off debts by focusing on the lowest balance debt first. Experts suggest, eliminating your smallest debts may encourage you and give you the confidence to handle the situation. Many people find themselves helpless just by seeing the number of different debts they have. In such situations, if they can wipe out one debt easily, it can give them a boost to tackle the situation even better.

A debtor might ignore the interest rates while choosing the debt snowball method. But that might end up being expensive to them later. The biggest downfall of the debt snowball method is the assumption that paying off the next lowest balance may always help to get out of the misery soon. That’s not true. Higher interest debts can cost you more than anything.

2 Debt avalanche

This debt repayment method helps you to repay the highest interest debt first. So, you’ll pay off the debt that cost you more with time.

By following this method, you’ll go with the “logical” choice or the most “mathematically-correct” way to wipe out your debts. If you have a steady income or good assets in your hand, following this method may be easier for you. But if you are “struggling” with your finances or if you are “irresponsible” to control your finances, debt avalanche method may not be suitable for you.

It is absolutely normal to choose between debt snowball and debt avalanche method to get out of debt. But you should consider your financial status, your approach towards money, and your personal tendencies before choosing any one.

So, now let’s see how much the Debt Tsunami method can be helpful.

How the debt tsunami method works

Let’s discuss the steps of debt tsunami method.

a Establish the initial mindset

You need a typical mindset to follow this method. You start the process by freezing your credit cards, keeping the ATM cards away from your wallet, using cash instead of cards, tracking down your spending for a week, etc. To increase your cash in hand, you can make a list of unused things you own and sell them. If you are having emotional issues to sell them all, you can retain half of them and sell the other half.

Do whatever that comes to your mind to hate your debts. You can always get back to your regular financial habits later, but for the time being live a frugal life. You must understand that the entire debt tsunami method will be effective only when you can gather enough positive energy to maintain that momentum.

b List the debts from smallest to largest

Make a list of your debts in an ascending order as per the amount. Also, don’t forget to add the interest rates.

Yes, there’s a hint of debt snowball method that you can execute here. People tend to attach more emotional value to cut off the smallest debt. However, you shouldn’t ignore the rate of interest like the Debt Snowball method.

c Provide attention to the emotional connection

Now, you need to play a sort of mind game thing! Check out the first debt on the list, look how much you owe now and the interest rate. Now, just imagine eliminating the debt totally.

Try to realize how you are feeling now emotionally! Calculate how long it might take to eliminate the debt completely. Think about the creditor, and how did you you spend the money. Think about how much this particular debt is important in your financial life?

Make a note on those thoughts on that list. Rate them as per your emotional feeling. Now, proceed to the next debt on the list. Follow the same pattern, ask yourself, make notes, and rate them accordingly. Do this for each debt.

d Change the list order as per the emotional rating

After paying off the debt, check out the list all over again and make changes if needed. Reorder the list as per your emotional rating. It may happen that a high-interest debt may fall at the bottom of the list or a big credit card debt may hit the top. You can arrange the list as per your emotional choices. List your debt amount on the basis of your satisfaction level if you pay all of these debts once and for all. Also, consider how easily you can get out of debt.

e Begin the race against debt

You have the list, what now? Your actual journey begins now. Now you know the path to climb the mountain, but all you need is enough stamina, right gears, and a guide...if necessary.

You can start your journey by tracking your daily spending. Apart from that you should avoid luxuries, create a budget, and start living a measured life. Whatever you do, make sure you should build your funds. Follow this method and get out of debt as per your priority. The best thing about the debt tsunami method is its flexibility. When you’ve paid off few of your accounts, you may modify your approach. If you like you can try a mix of debt payment strategies like debt snowball, debt avalanche, debt consolidation and settlement together.

Check out the 7 most popular debt payment methods:

• Debt snowball and avalanche
• Balance transfer
• Consolidation loan
• Debt consolidation
• Debt settlement
• Bankruptcy

Getting rid of your debts might give you a mental and emotional boost. But don’t forget, like other popular DIY debt repayment methods, it doesn’t deal with the lowest debt or highest interest rate. So, it might get expensive.

Debt tsunami method is all about your flexibility. But too much flexibility may also harm the amazing benefit that comes with a well-planned method. Therefore, it’s your duty to follow a systematic approach and maintain a balance on your own debt payment methods.