Debt Snowball Calculator
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Debt Snowball Meaning
Debt snowball is a method for paying off debts by focusing on smaller balances first, then rolling the payments into larger debts.
It's about gaining momentum and motivation as you eliminate debts, creating a path to financial freedom.
Debt Snowball vs Avalanche
The Debt Snowball method tackles debts from smallest to largest balances, offering quick wins for motivation.
Avalanche method prioritizes high-interest debts first, saving money in the long run.
Is Debt Snowball Method the best?
While the Debt Snowball method offers psychological wins by tackling smaller debts first, it may not always be the most financially efficient.
From a pure mathematical and financial standpoint, methods like the Avalanche technique will indeed save you more money on interest payments over time.
However, the Debt Snowball method's psychological benefit of quick wins and motivation shouldn't be overlooked.
In short, the Avalanche method wins over the Snowball method from a pure financial standpoint.