Warning: Tried the 'snowball method' on $8k of credit card debt and it backfired

Paid off the smallest card first like everyone says, but the interest on the bigger one ate up my progress in 4 months. Anyone have a better plan when the rates are crazy different?

3 comments

3 Comments

milarodriguez15d ago

Avalanche method for high interest cards.

victor77915d ago

My 27% APR store card feels personally attacked by this whole avalanche plan. It's like a math teacher showed up to my fun little debt party and started making everyone line up by interest rate. Sure, it saves money, but staring at that highest number every month is a special kind of torture. I guess I'll be over here throwing my spare change at it while crying.

parker_palmer4415d ago

Ugh, that's the worst. I read a piece that said the avalanche method works better when rates are super different. You list all debts by interest rate, highest first, and attack that one with any extra cash while making minimums on the rest. It saves more on interest over time.