In a debt avalanche scenario with three $1,000 debts at interest rates of 4%, 6%, and 8%, an individual would pay the 8% loan first, followed by the 6% loan, and finally the 4% loan to reduce total interest paid.

Authors

• Person: Not available Organization: Navy Federal Credit Union
  Snowball vs. Avalanche Method for Paying Down Debt

Sources

• Snowball vs. Avalanche Method for Paying Down Debt www.navyfederal.org Navy Federal Credit Union via serper

Referenced by nodes (1)

• Debt Avalanche method concept