Debt snowball
Debt, arrears & collectionsA repayment method where you pay off the smallest debts first.
Overview
This method focuses on quick wins to build momentum.
It can be motivating, even if it is not the cheapest in interest terms.
Why it matters
- It can keep you motivated to repay.
- It simplifies debt management over time.
- It helps reduce the number of separate payments.
FAQs
Is the debt snowball method best for everyone?
Not necessarily. It works well for motivation, but other methods can reduce interest faster.
Does the snowball method affect my credit score?
Paying down debts can improve utilisation and payment history over time.
Related terms
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