Personal Finance and Investing

Happy Hoosier

(8,561 posts)

10. This is old now, but wanna hit this...

Tue Dec 3, 2024, 09:02 AM

Dec 3

The highest interest rate is costing her more. That's the way iterest works. There are a variety of online apps that will demonstrate this. The Debt Avalanche method (pay highest rates first, regardless of balance) almost always pays off debt faster and saves the most in interest payments in comparison to the Debt Snowball method (pay the lowest balance first, regardless of rate). It's just math. The Debt Snowball has the psychological advantage of getting to the first paid-off debt first, which is why many advisors suggest it for people struggling with debt.

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Daughter's Credit Card Debt [View all] groundloop Nov 8 OP

3 years ago, my adopted daughter came to me with a similar problem UpInArms Nov 8 #1

A home equity loan would certainly cost less interest if she has a good credit rating and can get one. Lonestarblue Nov 8 #2

Home equity line of credit is one way to go but, Quakerfriend Nov 8 #3

She's already put in the paperwork to substitute teach...... groundloop Nov 8 #4

Excellent! I hope she can pay it down quickly!! Quakerfriend Nov 8 #5

A quick look at a credit app revealed that a $25K, 15 year fixed rate loan would cost about $250 a month. BobTheSubgenius Nov 8 #6

I do have a quibble with her paying off the highest-rate card first.... lastlib Nov 8 #7

This is old now, but wanna hit this... Happy Hoosier Dec 3 #10

The first question I would ask is this; A HERETIC I AM Nov 9 #8

And one other thing; A HERETIC I AM Nov 9 #9

This may be OBE, but... Happy Hoosier Dec 3 #11

Along with paying off that debt, PoindexterOglethorpe Dec 5 #12