Question 1

What is the Avalanche method?

Accepted Answer

The Avalanche method prioritizes paying off debts with the highest interest rate first. This saves the most money on interest over time and is mathematically optimal.

Question 2

What is the Snowball method?

Accepted Answer

The Snowball method prioritizes paying off the smallest balances first, regardless of interest rate. This gives quick wins and psychological motivation, though it may cost more in interest.

Question 3

Which debt repayment method is better?

Accepted Answer

Avalanche saves more money, but Snowball can be more motivating. If you need psychological wins to stay motivated, use Snowball. If you want to minimize interest paid, use Avalanche.

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