Question 1

What is the debt avalanche method?

Accepted Answer

The debt avalanche method pays off debts in order of highest interest rate first while making minimum payments on all others. It minimizes total interest paid and is mathematically the most efficient strategy.

Question 2

What is the debt snowball method?

Accepted Answer

The debt snowball method pays off the smallest balance first, regardless of interest rate. While it costs more in interest than the avalanche method, many people find the quick wins motivating and are more likely to stick with it.

Question 3

How much can I save by paying extra toward credit card debt?

Accepted Answer

Even small extra payments make a big difference. An extra $50/month on a $10,000 balance at 20% APR can save over $4,000 in interest and cut repayment time by 3+ years. Use our calculator above to see your specific savings.

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