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Thus focusing on paying down the account with the smallest balance tends to have the most powerful effect on people's sense of progress – and therefore their motivation to continue paying down their debts.
Start with the smallest balance.
Make only the minimum payment on all credit cards except the one with the smallest balance.
The first method, known as the "Snowball" method, entails paying down the account with the smallest balance first.
In the Snowball example below, you'd start by paying off the Discover card, since it has the smallest balance.
It also calls for you to pay the minimum monthly payment on all your loans but then advises you to prioritize the loan with the smallest balance.
Similar(34)
After six months, heavy payday borrowers will accumulate a small balance.
A simple, small balance sheet meant Jefferies could sell itself for a premium price.
On balance, the falling pound will lead to stronger growth, higher prices and a smaller balance of payments deficit.
"For someone with a smaller balance, it could be a game changer," reckons Andrew Hagger of the personal finance site Moneycomms.co.uk.
Come Monday morning, Lehman would have had a smaller balance sheet coupled with a newly plumped cushion of capital.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com