Snowball vs Avalanche: What's the best way to pay off debt? - Deepstash

Bite‑sized knowledge

to upgrade

your career

Ideas from books, articles & podcasts.

published 3 ideas

Snowball vs Avalanche: What's the best way to pay off debt?

moneyunder30.com

The snowball debt method

With this method, you pay off your debts from the smallest balance to the largest balance, regardless of interest rates.

When you pay the smallest debts first, you start to clear your low debts away very quickly. Doing this feels empowering. Once you've paid off a debt, yo...

1

STASHED IN:

89

In the debt avalanche method, you pay your debts from the highest interest rate to the lowest interest rate, regardless of balance.

You will pay less in interest if you pay off your debts in this order. You will also pay it off faster.

STASHED IN:

80

The supporters of the two methods are both enthusiastic about which one to use. However, it barely matters which system you use. The best approach is the one that keeps you motivated.

Make the minimum payments on all of your debt. Then, focus on one debt that bothers you the most a...

STASHED IN:

78

0 Comments

Discover and save more ideas by creating a

FREE

Deepstash account.

Develop a

reading habit

, save

time

and create an amazing

knowledge library

.

GET THE APP: