Personal Finance

Q&A: What is Debt Snowball?

Debt Snowball is a common strategy to pay down debt that involves paying the minimum payments on all debt except for the one that has the lowest balance, which is to be paid off most aggressively. Once the first debt is paid off completely, then you change the target to the next lowest balance, working your way up to the highest balance and finally paying that off.

Pro Tip: Although a common debt pay-down method, Debt Snowball is not the best method; Debt Stacking is.

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