Do you really know? What is the snowball method of paying back debt?
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Dec 15, 2025 Discover the snowball method, a strategy that tackles your smallest debts first, creating motivation as you gain momentum. Learn about its advantages, like stress reduction and improved credit scores, alongside potential drawbacks, such as higher interest costs if larger debts are ignored. Tune in as personal preferences and alternative methods, like the avalanche technique, are discussed. Plus, essential tips on discipline and spending adjustments for success make this a must-listen for anyone tackling debt!
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Start Small To Build Momentum
- Pay off your smallest debt first while keeping minimum payments on others to build momentum.
- Then apply the freed-up payment to the next smallest balance and repeat until you are debt-free.
Psychology Drives Debt Repayment
- Seeing balances disappear generates psychological momentum and motivation to continue.
- Quick wins reduce stress and make tackling larger debts easier.
Maintain Minimums And Lower Utilisation
- Keep up minimum payments on all accounts to avoid late fees and penalties.
- Lower overall credit utilisation as you pay balances to potentially improve your credit score.