I haven't read the whole thread, so maybe this has, been answered already, but the snowball is:
-List all debts from smallest amount to biggest, ignore interest.
-Pay the smallest first, minimum on everything else. Throw everything extra at it.
-When that's gone, take the payment from the first debt and start putting that towards the second one, and so on. Until they are all gone.
This is not the cheapest way because you ignore interest, but it is the most rewarding one because you should see some results from paid off debt rather quickly. Psychologically speaking, especially if this paying off debt thing is new-ish to you, this is the version you're most likely to be able to finish.
The other option, the avalanche method, is similar but you pay the debt with highest interest first. This is usually (a bit) cheaper but harder to stick with because it will take a long time to see results.
kool_meesje t1_j2frvfq wrote
Reply to comment by why-rooftop in Debt Relief - Loss of Income by why-rooftop
I haven't read the whole thread, so maybe this has, been answered already, but the snowball is:
-List all debts from smallest amount to biggest, ignore interest.
-Pay the smallest first, minimum on everything else. Throw everything extra at it.
-When that's gone, take the payment from the first debt and start putting that towards the second one, and so on. Until they are all gone.
This is not the cheapest way because you ignore interest, but it is the most rewarding one because you should see some results from paid off debt rather quickly. Psychologically speaking, especially if this paying off debt thing is new-ish to you, this is the version you're most likely to be able to finish.
The other option, the avalanche method, is similar but you pay the debt with highest interest first. This is usually (a bit) cheaper but harder to stick with because it will take a long time to see results.