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What is the debt snowball method?

Quick answer

The debt snowball method pays off debts smallest balance first (regardless of interest rate), making minimum payments on the rest. Each paid-off debt frees up cash to attack the next one. Great for motivation. The debt avalanche method (highest rate first) saves more money but is psychologically harder.

More context

The debt snowball method pays off debts smallest balance first (regardless of interest rate), making minimum payments on the rest. Each paid-off debt frees up cash to attack the next one. Great for motivation. The debt avalanche method (highest rate first) saves more money but is psychologically harder. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

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