Question 1

Should I pay off the highest-interest debt or the smallest balance first?

Accepted Answer

Highest-interest-first (the avalanche method) saves the most money mathematically; smallest-balance-first (the snowball method) tends to keep people motivated longer, either is valid, the best method is the one you'll actually stick to.

Question 2

Should I stop investing while paying off debt?

Accepted Answer

It depends on the debt's interest rate versus your likely investment return, high-interest debt (like credit cards) is usually worth prioritizing over investing, lower-interest debt is more of a personal choice.

Question 3

How do minimum payments affect my payoff timeline?

Accepted Answer

Paying only the minimum on a high-interest debt can take years and cost far more in interest than the original balance, even a modest extra payment above the minimum shortens this significantly.

Debt Payoff Checklist

Frequently asked questions

Debt Payoff Checklist

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Frequently asked questions

Should I pay off the highest-interest debt or the smallest balance first?

Should I stop investing while paying off debt?

How do minimum payments affect my payoff timeline?

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