debt snowball

Definition

A debt reduction method that starts with paying off the smaller debts first and then adding those funds to other payments to eliminate larger debts. The minimum payment on the larger debts would still be paid until the individual can start funneling the excess funds to the larger debts.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
debt signaling debt swap