Question 1

What is the debt snowball method?

Accepted Answer

Pay off the smallest debt first while making minimum payments on others. Once paid, apply that payment to the next smallest. It builds psychological momentum.

Question 2

What is the debt avalanche method?

Accepted Answer

Pay off the highest-interest debt first. It's mathematically the most efficient method and saves the most money in interest.

Question 3

How much extra should I pay to get out of debt faster?

Accepted Answer

Any extra amount helps. Even $50-100 extra per month can shave years off your debt and save thousands in interest.

Question 4

Should I pay debt or save first?

Accepted Answer

First build a basic emergency fund (1-3 months of expenses). Then focus on paying debts with rates above 10%, as the interest you pay exceeds what you'd earn saving.

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