Learn · 3 min read

Snowball or highest interest first?

Think about it

Which of your debts bothers you most, and why that one?

Myth

You have to pay the biggest balance off first.

Truth

Two common orders work: smallest balance first, or highest interest first. Both beat no plan at all.

The idea

The smallest-balance method clears accounts early, which keeps people going. The highest-interest method can cost less over time.

What matters most is the one you will actually stick with, with every minimum still paid on time.

Example

A household with a $300 store card and a $4,000 loan clears the small card first, then rolls that payment onto the loan.

One sentence, saved privately to your plan. Optional.

Ask yourself

Which order would keep you going?

Try it

One move

Write our debt list in payoff order

Go deeper

General education only, not advice.