When it comes to paying off debt, there are two popular strategies that are typically encouraged: The Debt Avalanche method or the Debt Snowball method Both of these are effective for getting you to debt free, but each has pros and cons. The Debt Avalanche method The Debt Avalanche method consists of paying off your debt with the highest interest rate first. Once it’s paid off in full, you then focus on the next highest interest rate debt, and so on, until you pay off your lowest interest rate debt last. Because you get rid of your highest interest debts first, the Debt Avalanche method saves you the most money overall. For this reason, it is mathematically the best solution to paying off your debts. Using the Debt Avalanche method, you will likely focus on paying off things like credit cards and lines of credit before you tackle traditional low-interest debts like student loans. The […]
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