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Debate: Should you pay off a small debt first or the one with the highest interest rate?
Last month I had $400 left on a store card charging 12% and a $2,000 student loan at 6%, and I went back and forth on which to attack first. I ended up clearing the store card because the quick win felt good, but now I'm wondering if I wasted money on extra interest. Which side do you lean toward for budgeting wins: the snowball method or the avalanche method?
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seanlewis7d ago
The dopamine hit from quick wins usually beats math in real life.
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thomas_brown7d ago
A friend of mine spent months calculating the perfect time to buy a house, ran all the numbers, then missed out because he took too long deliberating. Meanwhile his neighbor just picked a place based on liking the backyard and it tripled in value within two years. Sometimes the gut call wins out even when the spreadsheet says otherwise.
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