Debt-snowball Method

The debt-snowball method is a debt reduction strategy, whereby one who owes on more than one account pays off the accounts starting with the smallest balances first while paying the minimum on larger debts. Once the smallest debt is paid off, one proceeds to the next slightly larger small debt above that, so on and so forth, gradually proceeding to the larger ones later.

Read more about Debt-snowball Method:  Overview, Methodology, Example, Benefits, Criticism, Research

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Debt-snowball Method - Research
... Decision-making research has revealed that the debt-snowball method is a very common approach to managing multiple debts, even when larger debts have ... (2011) found that people naturally use the snowball method, by paying off small debts first, and this reflects negatively on their financial outcomes since they keep on paying off debts in an inefficient way ...

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