Section 1 - Instruction

Let's recap the core difference: Debt Snowball focuses on the smallest balance for psychological wins, while Debt Avalanche focuses on the highest interest rate to save the most money.

Choosing the right one depends on your personality and financial situation.

Engagement Message

Which method are you leaning towards right now?

Section 2 - Practice

Type

Fill In The Blanks

Markdown With Blanks

Let's analyze a debt list. You have the following debts:

  • Credit Card: $1,000 at 25% interest
  • Student Loan: $10,000 at 5% interest
  • Personal Loan: $3,000 at 15% interest

Using the Debt Snowball method, you would attack the [[blank:Credit Card]] first. Using the Debt Avalanche method, you would also attack the [[blank:Credit Card]] first.

Suggested Answers

  • Credit Card
  • Credit Card
  • Student Loan
  • Personal Loan
Section 3 - Practice

Type

Sort Into Boxes

Practice Question

Sort these characteristics into the method they best describe.

Labels

  • First Box Label: Debt Snowball
  • Second Box Label: Debt Avalanche

First Box Items

  • Focuses on behavior
  • Quick initial wins
  • Builds motivation

Second Box Items

  • Focuses on math
  • Saves more interest
  • Requires discipline
Section 4 - Practice

Type

Multiple Choice

Practice Question

Someone who gets easily discouraged and needs to see progress quickly to stay on track would likely have the most success with which method?

Sign up
Join the 1M+ learners on CodeSignal
Be a part of our community of 1M+ users who develop and demonstrate their skills on CodeSignal