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The Daily Capital
PERSONAL FINANCE · Lesson 65

Debt snowball vs avalanche: which actually works

Daily Desk · Editorial5 min read
There are two proven ways to pay off debt: one saves you the most money, the other keeps you motivated. The best one is the one you'll actually finish.

If you've got multiple debts, the order you pay them off matters. There are two well-known methods — the snowball and the avalanche — and the “right” one depends on whether you're driven more by math or by momentum.

Educational, not financial advice.