Which is to say, the speaker has acknowledged that the accounting shenanigans used to get this bill passed in the teeth of statutory spending constraints are basically bullsh**. But thereâs a lot of bullsh** going around Washington just now.
So then I tried the âlittle debtsâ approach. You knowâ¦ Pay off the smallest debt, then take the payment you were making on that and put it against the next debt. Thatâs often called the debt snowball, and the idea behind it is that seeing that âwinâ early is supposed to motivate you.
Finally, all $500 would go to the debt with the lowest rate of interest (the car loan). The major advantage of using the debt avalanche method is that it minimizes the amount of interest you pay, as long as you stick to the plan. It also minimizes the total amount of time it takes to get out of debt since interest doesnât accumulate as quickly. An alternate technique of debt repayment is the debt snowball.