Question

Which answer choice best describes the debt snowball method?
a.
pay off credit cards in order of interest they carry, lowest interest first
b.
pay off credit cards in order of interest they carry, highest interest first
c.
pay off credit cards in order of balance amount, lowest balance first
d.
pay off credit cards in order of balance amount, highest balance first

Answer 1

c. Pay off credit cards in order of balance amount, lowest balance first — you concentrate extra payments on the smallest balance to build momentum, then roll payments to the next smallest.