Debt strategy for case studies: what to pay first
Make a debt inventory
Create a table with balance, interest rate, minimum payment, and whether the debt is secured. This instantly shows which debts are urgent.
Avalanche vs. snowball
The avalanche method attacks the highest interest rate first and usually saves the most money. The snowball method attacks the smallest balance first and can be useful when motivation is the biggest barrier. In a formal case study, explain why you chose one.
Common debt recommendations
- Pay minimums on every debt to avoid fees and credit damage.
- Target credit-card balances before lower-rate student or mortgage debt.
- Do not accelerate low-rate debt while the emergency fund is empty.
- Consider refinancing only if fees, term length, and total interest make sense.
- Avoid using retirement withdrawals for ordinary expenses unless the case clearly supports it.
Credit-building angle
For thin or damaged credit files, recommend on-time payments, low utilization, a secured card if appropriate, and checking credit reports. The goal is safe credit access, not more borrowing.