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Crushing Debt: Snowball vs. Avalanche Method

snowball vs avalanche

Ready to crush that debt for good? Choose your method: 

Snowball method: 

  1. List your debts in the order from lowest balance to largest. Don’t pay attention to the interest rates here.
  2. Maximize payments on the smallest debt. But, do make the minimum payments on your other debts!
  3. When you’ve paid it off, move on to the next smallest until you’ve worked through your list.
  4. So long, debt!

Avalanche method:

  1. List your debts in order from the highest interest rate to the lowest. Don’t pay attention to the balance.
  2. Maximize payments to the debt with the highest interest rate (while making minimum payments on the others).
  3. When you’ve paid it off, move on to the next-highest interest debt until you’ve worked through your list.
  4. So long, debt!