Choose a debt payoff plan: avalanche or snowball: test your skills
Two proven payoff strategies — one saves the most money, one keeps you going. Here's how to pick. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Choose avalanche or snowball
- Roll freed payments forward
- Keep every minimum current
- Practice
1. The avalanche targets…
- Practice
2. The snowball targets…
- Practice
3. What must happen in both methods?
- Key idea
4. Which statement best explains "The method you keep beats the better one"?
- Key idea
5. Which statement best explains "Rolling is the engine"?
- Key idea
6. Which statement best explains "Minimums are non-negotiable"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Debts: $600 at 25%, $2,000 at 19%, $4,000 at 8%. Which is first under each method?
Show the answer
Both start with the $600 card
It has the highest rate (avalanche) and the smallest balance (snowball), so both agree here.
Write your debts in avalanche order and in snowball order. Pick one and set your attack payment.
More tests in this bootcamp
- Judge debt by its purpose, rate and total cost
- Choose a debt payoff plan: avalanche or snowball
- Compare debt consolidation without missing the fees
- Use credit cards without carrying interest
- Understand what moves your credit score
- Check your credit report and question errors
- Protect your identity and know the recovery steps
- Respond to debt collectors with records and confidence
- Understand your student loan repayment options
- Compare car loans beyond the monthly payment
- Decode your mortgage payment: principal, interest, taxes and insurance
- Final exam: Debt and credit