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Two proven methods to pay off debt: The Avalanche Method — pay off highest interest debt first while paying minimums on others. Mathematically optimal — saves the most money. Example: Credit card at 36% first, then personal loan at 16%, then car loan at 10%. The Snowball Method — pay off smallest balance first regardless of interest rate. Psychologically powerful — quick wins keep you motivated. Both work. Avalanche saves more money; Snowball builds momentum. Choose what keeps you consistent. Also: never just pay the minimum on credit cards — you will be paying for decades.
Key Takeaway
Avalanche method saves the most money. Snowball method builds momentum. Pick one and stick to it — consistency beats perfection.