Clearing debt: snowball or avalanche
Two proven ways to pay off several debts — pick the one you'll actually stick with.
In the app: 2 lessons · 1 quick check
Key points
1. List every debt
- Write down every debt: who you owe, how much, the interest or fees, and the minimum payment. Include loan apps, buy-now-pay-later, money owed to family and the shop credit you…
Stop adding new debt while you clear the old — otherwise you're filling a bucket with a hole.
2. Two ways to pay it down
- Snowball — the smallest balance first. Clearing one quickly feels good and keeps you going; its payment then rolls onto the next.
- Avalanche — the highest interest first. It costs the least in total, but the first win can take longer.
The full lesson is in the Kopkad app
Worked examples in naira, quick checks to test yourself, and the step-by-step guide to doing it, free with your account.
Read more elsewhere
- The Total Money Makeover (Dave Ramsey)Wikipedia
- Debt-snowball methodWikipedia
- The debt avalanche methodInvestopedia
External sites, not run by Kopkad.
Full lesson + tools in the Kopkad app
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