Question

Paying off debt is an important step towards financial freedom. There are two popular methods for repaying debt: the snowball method and the high rate method. Which method is best for staying motivated during debt repayment?

Answer 1

The snowball method is generally considered the best method for staying motivated during debt repayment. This method involves paying off the smallest debts first while making minimum payments on larger debts. As the smaller debts are paid off, it provides a sense of accomplishment and motivation, which can help individuals stay focused on their goal of becoming debt-free. This method emphasizes psychological and emotional benefits by focusing on quick wins, rather than just prioritizing the debts based on interest rates.