To tackle debt efficiently, two popular approaches are the debt snowball and debt avalanche methods. Ultimately, the choice depends on your financial goals and personality. If you’re motivated by quick successes, the snowball method could keep you on track. If minimizing interest and reducing total repayment time is your priority, the avalanche method may be a better fit.
Read the article to know more about these two methods.
https://www.experian.com/blogs/ask-experian/avalanche-vs-snowball-which-repayment-strategy-is-best/
Vocabulary Questions:
- What does “drawback” mean? “Here are some benefits and drawbacks to consider.” Use it in a sentence.
- What does “eliminate” mean? “Continue paying off each debt this way until you’ve eliminated all of them.” Use it in a sentence.
- What does “worthwhile” mean? “Once you’ve made the decision to pay off debt, you’ve already committed to an important and worthwhile financial move.” Use it in a sentence.
Discussion Questions:
- What is the main focus of the Avalanche Method for debt repayment?
- How does paying off high-interest debt first help save money over time?
- What must you do with other debts while focusing on the highest-interest debt in the Avalanche Method?
- Why might someone find the Avalanche Method challenging at first?