Snowball vs. Avalanche Repayment
Should you pay off the smallest loan first or the one with the highest interest? This is the classic battle between Math and Mindset.
- The Snowball (Psychology): Pay the smallest balance first. The “quick win” gives you the motivation to keep going.
- The Avalanche (Mathematics): Pay the highest interest loan first. This saves you the most money in the long run.
- The Verdict: Small wins (Snowball) often lead to more permanent debt-free results by freeing up monthly cash flow.
Watch this video to find out which strategy fits your personality and your wallet.