Pay off debts starting with the smallest from "summary" of The Total Money Makeover: Classic Edition by Dave Ramsey
The concept of paying off your debts starting with the smallest one is a key principle in achieving financial freedom. This method, also known as the debt snowball, involves listing all your debts from smallest to largest and then focusing on paying off the smallest debt first, while making minimum payments on the rest. By tackling the smallest debt first, you experience a quick win and a sense of accomplishment, which motivates you to keep going. This approach is psychological in nature, as it gives you a sense of progress and momentum in your debt repayment journey. As you pay off each debt, you free up more money to put towards the next debt on your list. Over time, the amount...
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