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.
Other articles related to "method":
... 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 ...
Famous quotes containing the word method:
“A method of child-rearing is notor should not bea whim, a fashion or a shibboleth. It should derive from an understanding of the developing child, of his physical and mental equipment at any given stage, and, therefore, his readiness at any given stage to adapt, to learn, to regulate his behavior according to parental expectations.”
—Selma H. Fraiberg (20th century)