John D. Cook personal blog
Mathematically correct but psychologically wrong
The snowball strategy says to pay off your smallest debt first, then the next smallest, and so on until you're out of debt. When I first heard of this I thought it was silly. Clearly the optimal strategy is to pay off the debt with the highest interest rate first. That assessment is mathematically correct,
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- 99
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Math & AlgorithmsLife, Learning & Writing2010
On Hacker News
| Submitted | Title on HN | Points | Comments |
|---|---|---|---|
| Nov 2, 2010 | Mathematically correct but psychologically wrong by fogus | 99 | 61 |
