Debt snowball
Definition
A payoff strategy that makes minimum payments on every debt and sends any extra money to the smallest balance first, for faster early wins.
Example
A $400 store card is cleared before a larger, higher-rate credit card, then its payment rolls into the next debt.
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General educational information, not personal financial advice. See our disclaimer.
Go deeper
· Loans & Debt
Debt Avalanche vs. Debt Snowball: Which Pays Off Debt Faster
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