Recently, I paid off a credit card (which was once over $16,000) and another debt. When you pay off one bill and you use that money to add to payments to the next bill, it’s called a snowball. Eventually, you can pay off everything with the larger payments that build up month to month.
If you have more than one debt, it is best to pay off the smaller debts first, then use those payments to snowball to the next largest debt. If you have two debts that are about the same amount, pay off the one with the higher interest rate first.
Just like how snowballs build up as it rolls down a hill, these payments build up as we pay off bills. So, we have snowballs in Hawaii!