Credit card Snowball Debt method of paying off your multiple credit card debt tells you to pay off the credit card with the least amount of balance first regardless of the interest rate.
This method aims to make the process of paying off your credit card debt easier by reducing the burden gradually.
By tackling the smaller credit card debts first you are in a better position to tackle larger balances later on.
The credit card debt snowball is a method of paying off your credit card that has been popularized by financial advisor Dave Ramsey. This method suggests that you pay off the credit card with the lowest balance first. This method has gained popularity because it enables a person who faces debt on multiple credit cards to complete payment on each individual card quicker. Since you begin by paying the balance on the credit card which has the amount of balance you will take it faster. You then work your way up to a credit card with the next higher balance. This method does not consider the rate of interest that is active on the credit card only the balance. The credit card with the lowest balance may also be a card with the lowest amount of interest or the highest. The point of this method is that since you begin to pay off your credit cards one by one quickly it provides a great deal of motivation to continue with the efforts of becoming debt free.
They the method of paying off your credit card is the high interest rate method which involves paying off the credit card with the highest interest rate. This method is usually takes less amount of time to making you credit card debt free and says more money on the interest and financial charges.