Exact(7)
Once the smallest loan is paid off, you move onto the next-smallest debt, eventually working your way up to the loan with the largest balance.
But researchers say the outcome may have been different for the people with the smallest loan balances.
When that loan is paid off, you move on to the next smallest loan and so on.
Some graduates opt to pay the smallest loan off first -- this is the debt snowball method.
I focused every extra dollar each month on the smallest loan and just paid the minimum on the larger ones.
When the smallest loan was paid down, I added that amount to the next loan's payments, and so on until I was debt free.
Similar(53)
Meanwhile, the total amount borrowed with these smaller loans fell by less than 2 percent — meaning that even the smallest loans are getting bigger.
An alternative method is to pay off the smallest loans first.
The small loan?
"My father gave me a small loan.
It was a small loan of $1 million.
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