According to Debt Avalanche vs. Debt Snowball: What's the Difference? Debt Avalanche: make minimum payments on...

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According to Debt Avalanche vs. Debt Snowball: What's the Difference? Debt Avalanche: make minimum payments on all debt accounts. Contribute any additional money towards the highest interest rate debt. Debt Snowball: make minimum payments on all debt accounts. Contribute any additional money towards the lowest balance account. Assume you've got $1400 each month to contribute toward your debts. Assume you're living a cash lifestyle from now on and not adding to any of these balances. Here's a snapshot of your monthly debt obligations: Debt Type Credit Card 1 Credit Card 2 (Private) Student Loan Debt Vehicle Debt Mortgage Debt Reflect Amount $5000 $2950 $25,745 $10,392 $100,197 Interest Rate 26.9% 8.25% 10.5% 4.61% 3.44% 1. For each method, predict the order that the debts will be paid off. Monthly Payment 3% of balance 3% of balance $347 $310 $447 2. Which method do you think will cost the least amount of total interest when all debts hav been repaid? 3. Which method do you think will pay off all debts in the least amount of time? According to Debt Avalanche vs. Debt Snowball: What's the Difference? Debt Avalanche: make minimum payments on all debt accounts. Contribute any additional money towards the highest interest rate debt. Debt Snowball: make minimum payments on all debt accounts. Contribute any additional money towards the lowest balance account. Assume you've got $1400 each month to contribute toward your debts. Assume you're living a cash lifestyle from now on and not adding to any of these balances. Here's a snapshot of your monthly debt obligations: Debt Type Credit Card 1 Credit Card 2 (Private) Student Loan Debt Vehicle Debt Mortgage Debt Reflect Amount $5000 $2950 $25,745 $10,392 $100,197 Interest Rate 26.9% 8.25% 10.5% 4.61% 3.44% 1. For each method, predict the order that the debts will be paid off. Monthly Payment 3% of balance 3% of balance $347 $310 $447 2. Which method do you think will cost the least amount of total interest when all debts hav been repaid? 3. Which method do you think will pay off all debts in the least amount of time?

Answer rating: 100% (QA)

1 Debt Avalanche Method Credit Card 2 2950 highest interest rate 269 Credit Card 1 5000 next highest ... View the full answer