The Money Academy · original educational lessons
Understand the cost of debt
Debt freedom · 10-minute lesson
APR is the annualized cost of borrowing. Higher-rate balances generally cost more over time, and small minimum payments can stretch payoff over years. Compare the avalanche approach (highest APR first) with snowball (smallest balance first). Neither strategy replaces paying every required minimum on time.
Action: List balances, rates, and minimum payments in your dashboard.
Create an account to save your learning progress.