If you’re dealing with credit card debt, you know high interest rates make it difficult to get ahead. Even when you’re staying on top of your minimum payments, it can take a long time to make a dent in your principal.
Financial gurus usually promote one of two approaches to paying off debt: the Debt Snowball and the Debt Avalanche methods.
The Debt Avalanche method prioritizes paying down the debt with the highest interest first, while the Snowball method focuses on paying the smallest balance first. The Debt Avalanche method results in greater savings, but the Debt Snowball method brings a psychological “win” that can be quite motivating.
A lesser-known approach, the Debt Spiral method, combines the benefits of each.
The Debt Spiral Method: How it Works
Rather than …