Question

If you are using the Snowball Method to get out of debt, which debt do you focus on first after you've made all of your minimum payments?
A.
The debt with the highest balance
B.
The debt with the highest interest rate
C.
The debt with the lowest interest rate
D.
The debt with the lowest balance

Answer 1

If you are using the Snowball Method to get out of debt, you focus on **D. The debt with the lowest balance** first after making all of your minimum payments. The idea behind the Snowball Method is to gain momentum by paying off smaller debts quickly, which can motivate you to continue paying off larger debts.