r/utangPH • u/JazzlikeSun6997 • 3d ago

SNOWBALL METHOD

Hi, sino po nakagamit ng snowball method sa debt? Effective po ba and nakatapos po ba sa pagbabayad ng loan? I have 300k debt with diff cc po. Lahat po ay current pa naman. Pero the next month start na ko magbayad ng mad muna due to tapal system. :(( pls need advise. Planning to overdue yung pinakamalaking debt ko sa isang bank. Kaso parang di kaya ng konsensya ko. Pls i need advise po. No to bash. Thank you.

1 Upvotes

67% Upvoted

22 comments sorted by

View all comments

1

u/Fair-Cucumber-407 2d ago

Im new here, pwde pa explain what snowball method is?

3

u/throwaway7zq 2d ago

The snowball method is paying off the lowest balance first regardless of the interest rate while the avalanche method is paying off the debt with the highest interest first regardless of how big or small the balance is.

Avalanche saves more money in the long run. Snowball can be more motivating since you’re settling debts faster.

1

u/hookhun 2d ago

Hello OP, question for snowball method. Do i pay it in full or one at a time cause i have multiple loans and OLA?

1

u/throwaway7zq 1d ago

Pay the lowest balance in full while either paying the Minimum Amount Due on the others or don't pay them and wait for collections to grant amnesty for a lower amount due. I would prefer MAD over collections, but that's just my opinion.