Debt Snowballing

[bdhu2001]

---

@QUAILMAN wrote:

---

@Anonymous wrote:

---

---

I have wondered why they don't do it by interest rates, but since I have not been in the position to do it myself, I'm trying not to be judgy. I think I would pay it off in the order i which it saves me the most money. But maybe these people get really motivated by seeing these small balances go away first. I think some wouldn't stick with it if they didn't see some major movement early on.

---

That is the thought process for people taking the snowball approach, but I really wish someone would explain why it is such a terrible choice.  Make a spreadsheet and compare the savings by taking the avalanche route instead.  That should be enough motivation to keep them going!

---

I've tried both methods, but I got out of debt with the snowball method.  I think that any approach that works for people, that isn't harmful, is good.  It's like Diets; you use the method that works for you.  Every diet isn't for everybody.  Every debt elimination isn't for everybody.  What ever works for the person who needs to get out of debt is the best method for them.

I have a debt software that gives choices between avalanche and snowball. When I had multiple bills, I'd pay my high interest rate cards first, but it would take time.  Life would happen & I found myself repaying off the same card.  When I switched to lowest bill first, I paid off multiple cards & never needed to recharge on them, even when issues came up.  Thus, I now PIF all my credit cards (if I use them).  Now I use cards for bills so that I can take advantage of rewards.  I previously only used my FNBO card for rewards.

[bartoe]

DH and I use the snowball method.  It was taught that if you pay off the smallest card first it starts to boost your morale.  

I am in-different either way.  I would prefer to spend the money on the one with the largest balance first then work our way down but I also have a lot of student loans and all the interest rates are lower than the credit cards that we have right now so until the CC are paid off there isn't much extra going to them.

But also, we have about 3 items that are medical related (having baby #3) that are being paid at via a monthly plan w/no interest.

[Anonymous]

DH and I are also doing the debt snowball. We started in Feb 2016 with roughly $20,000  of debt and have paid off 20% of it. The site I use undebt.it, says we should be debt free by Jan. 2018, but every dollar we have left from our budget gets included, so I'm hoping it will be closer to Jan 2017! 

[Anonymous]

---

@Anonymous wrote:

DH and I are also doing the debt snowball. We started in Feb 2016 with roughly $20,000  of debt and have paid off 20% of it. The site I use undebt.it, says we should be debt free by Jan. 2018, but every dollar we have left from our budget gets included, so I'm hoping it will be closer to Jan 2017! 

---

That's awesome, Nana! If you need some motivation, search "my debt snowball" on youtube. I love those videos and have found some great users to subscribe to.

[Anonymous]

I'm with some of the other posters...do what works for you...me personally I started with the snowball then changed up to the avalance once my 0% offers started to expire...I went from $15k to $7k in 3 months. Now what I do from that is leave all the cards at a 0% balance alone (every 3 months may charge something small and PIF immediately just to reflect activity) but for the most parts the bulk of most people debt is the house and vehicles and those are usually the ones with the lowest interest rates SO really I think it's a mind game and a catch 22...I don't feel the need to hit my mortgage hard since I plan to sell it in the next 3 years and move on and equity is there to fund the DP on the any new house I plan...So my cars are my biggest approach but working on improving my CRAs says my cc debt should be.