Snowball vs Avalanche payment method
Paying off your debts can sometimes be overwhelming. The trick is to find and stick to one payment method.You’ll be surprised to notice that once you’ve taken that first little step, everything else gets much easier.First thing first, you’ll need to write all your debts out. So something like this for example (name of debt, current balance, minimum payment, APR). Once you’ve done that it’s time to pick a method you’ll like to work with “The Snowball method vs The Avalanche payment method”. I’ll explain how both methods work so that you’re able to choose what might work best for you.
Snowball payment method
The snowball payment method is pretty simple.You first start off by paying off the smallest debt to the largest one. The goal is to pay more than the minimum on your smallest debt while only paying the minimum on everything else. The snowball method will have you feeling accomplished in no time depending on how much your smallest debt is. Once you’ve paid off your first debt you’ll be even more motivated to keep going. Once you’ve paid off your first debt, you’ll just move on to your second smallest debt and keep on repeating until all debts are payed off.
Avalanche payment Method
The Avalanche payment method is also pretty simple to be honest. Instead of paying off the smallest debt first, with the avalanche method you’ll be paying off the debt with the highest interest rate first. Using this method will save you some money. Think about it, have you ever paid your monthly payment then two days later half of it went right into interest. It’s annoying and you’re also losing money. And who like to lose money.
Both methods are pretty great. I’ve tried both the snowball and the avalanche payment methods before. My favorite one is “The Avalanche method”. With the snowball method I started seeing results fast which was great, I was pretty excited but I was still losing money from my capital one bank card that had a high interest rate on it. So I decided to switch over to the avalanche method and started paying off debts with a really high interest rate. That way I’d be saving money and paying off my debts at the same time. I hope my blog Snowball vs Avalanche payment method has helped you on your next step to paying off your debts.