Hot take: Paying off your smallest debt first is a trap most people shouldn't fall for.

I tried the debt snowball method for 4 months on $5,200 in credit card and car loan debt. Cleared the $300 card first, felt great, but the $4,900 car loan kept piling interest. My buddy did the avalanche method tackling high interest first, saved $400 in interest over the same time. Now I'm wondering if the emotional win of a small payoff is worth the extra cost long term. Anyone else ditch the snowball for something that actually saved them cash?

2 comments

2 Comments

felixw6814d ago

My small wins let me buy celebratory tacos that cost more than the interest I saved.

benb2114d ago

Felix's tacos cost more than his interest savings, but he still paid off that debt.