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Debate: Should you pay off the smallest debt first or the one with the highest interest?
I was $12,000 in debt from credit cards and a car loan in Nashville. I tried the snowball method paying off a $500 store card first because it felt good. But then I ran the numbers and the avalanche method on my 22% APR card would have saved me $800 in interest. Which one actually works better for you guys long term?
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the_joseph3mo ago
Snowball worked for me because the small wins kept me from giving up, but avalanche is better if you can stick with a spreadsheet for two years. Running the math is good, but knowing yourself matters more.
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lily_stone763mo ago
Wait, is it bad that I'd probably pick snowball just because I like the dopamine hit of crossing things off a list (even if the math says I'm losing money in the long run)? Yeah, I totally get that sticking with a spreadsheet for two years sounds like a punishment, not a plan. My budget spreadsheet usually lasts about three weeks before I forget what column has the rent in it. Honestly, I think snowball works better for people like me who need a gold star every month or they'll just give up and buy a pizza.
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