Question 1

What is the debt snowball method?

Accepted Answer

The debt snowball method focuses on paying off the smallest balance first while making minimum payments on all debts. Once the smallest debt is paid off, you roll that payment into the next smallest. This builds momentum through quick wins.

Question 2

What is the debt avalanche method?

Accepted Answer

The debt avalanche method focuses on paying off the highest interest rate debt first while making minimum payments on all debts. This mathematically saves the most money on interest but may take longer to see debts eliminated.

Question 3

Which method is better?

Accepted Answer

The avalanche method saves more money in interest, but the snowball method provides faster psychological wins. Choose avalanche if you're disciplined, snowball if you need motivation. Both work — the best method is the one you'll stick with.

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