![]() ![]() "Focusing on paying down the account with the smallest balance tends to have the most powerful effect on people's sense of progress - and therefore their motivation to continue paying down their debts," writes Remi Trudel, one of the HBR researchers. After conducting a series of experiments in which participants simulated paying back virtual 'debts,' researchers concluded that the factor that made the biggest impact on how hard participants worked wasn't the amount they were paying back or how much was left in the account afterward, it was the percentage of the balance they ended up getting rid of.Īlthough it makes more sense mathematically to pay down accounts that carry the highest interest rates first, they found that it was more motivating for participants to see small balances disappear. That's according to new research from the Harvard Business Review. It often indicates a user profile.Īnd while there are many strategies to eliminate debt for good, one method proves most effective: Prioritizing accounts with smaller balances, rather than those with higher interest rates, also known as the snowball plan. Thanks for stopping by! Your support is appreciated.Account icon An icon in the shape of a person's head and shoulders. I want you to be happy doing business with me so any questions are welcome. We are always trying to improve our products so any recommendations or thoughts are greatly appreciated. If you need something custom made, feel free to reach out. We take pride in creating simple, but comprehensive products at an affordable price. What is the minimum monthly payment if the. Please do not copy, share, redistribute or resell these spreadsheets. spreadsheet programs to use, we are using Microsoft Excel here. Get back to us so we can replicate this concern. The sample spreadsheet you are using (Upload it on OneDrive and send us the link). To isolate your concern about this formula, we'd like to know the following: The exact formula you are using. These products are meant for personal and not commercial use. A Debt Snowball spreadsheet is a useful template for managing finances in terms of expenses. Due to the type of product, these digital products are non-refundable.
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