3min chapter

Budget Nerds cover image

#36 - The Debt Question... Snowball or Avalanche?

Budget Nerds

CHAPTER

Should We Move on to a Debt Pay Off Method?

With this method, instead of focusing on the smallest balance, you're listing your debts by interest rate. Your priority debt starts with the hi est interest rate debt. The thinking there, pay that one off first. Pay the other high interest ones off first. You're going to save money in the long run, bcaue you're not paying as much in interest. It all comes back to motivation. That's why the debt now ballis so great. But if you are really motivated by getting of interest payments, and you're just really frustrated by the amount of interest that's going out, then i think you should go for for the highe entos rates.

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