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Free · 7 questions · 2 minutes
Debt Payoff Quiz
Seven questions to find your best debt payoff method: the debt snowball, the debt avalanche or a hybrid of both, plus the first step to take today.
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About the Debt Payoff Quiz
Seven questions to find your best debt payoff method: the debt snowball, the debt avalanche or a hybrid of both, plus the first step to take today. It has 7 questions and takes about 2 minutes. Your result comes with one concrete next move and how it fits your Money Type.
Possible results
- The debt snowball. Pay minimums on everything, then throw every extra dollar at your smallest balance. When it is gone, roll that payment into the next smallest. The early wins keep you going.
- The debt avalanche. Pay minimums on everything, then send every extra dollar to the highest interest rate. You pay the least interest overall and usually finish sooner.
- A hybrid of both. Knock out one small balance first for a quick win, then switch to the highest interest rate. You get early momentum without paying much extra interest.
Common questions
- What is the difference between the debt snowball and the debt avalanche?
- The snowball pays off the smallest balance first for quick wins. The avalanche pays off the highest interest rate first to save the most money. Both pay minimums on everything else.
- Which debt payoff method saves the most money?
- The avalanche, because it attacks the most expensive debt first. The snowball can still win if the quick wins are what keep you paying.
- Should I invest or pay off debt first?
- Get any 401(k) match first. After that, debt above about 7% to 8% APR is usually worth paying down before investing more. Try the debt vs invest calculator for your numbers.