GoldenEagle Posted July 26, 2013 Group: Royal Member Followers: 4 Topic Count: 764 Topics Per Day: 0.18 Content Count: 7,626 Content Per Day: 1.80 Reputation: 1,559 Days Won: 44 Joined: 10/03/2012 Status: Offline Share Posted July 26, 2013 Found this today... A good reminder. These are the simple steps to snowball your debt Create a list of all of your debts: credit cards, car loans, student loans, mortgages, etc… Next to each one write down the total balance owed. Re-order these from smallest to largest debts (use Excel or Google Docs to make this simpler.) Pay the minimum payment on all of the debts – except the smallest one. Put every extra dollar you can find towards paying off that smallest debt. Celebrate like crazy when you get that first debt paid off. Take the amount you were paying towards the first debt and put towards the next smallest debt. Do this until this one is paid off. Celebrate again! Continue this process until each one is paid off. What you will find is that each time you pay off a debt, the “snowball” gets larger. Since you are taking the amount you used to pay off the first debt and putting it all + the minimum payment that you were already paying to the second together, you are making more of an impact towards that debt. Each time you pay off a debt, the snowball gets larger and more powerful – which is great, because it just increases the speed that each debt gets paid off.http://christianpf.com/snowball-your-way-out-of-debt/ Link to comment Share on other sites More sharing options...
gdemoss Posted July 26, 2013 Group: Royal Member Followers: 8 Topic Count: 59 Topics Per Day: 0.01 Content Count: 4,402 Content Per Day: 0.99 Reputation: 2,154 Days Won: 28 Joined: 02/10/2012 Status: Offline Birthday: 04/26/1971 Share Posted July 26, 2013 People who simply seek to address problems through logical means without regard for the principalities and power, the rulers of darkness in high places who drive others through fear, insecurity, doubt and other means, mean well for sure but truly miss the mark when it comes to helping. Many times they simply add insult to injury. If it were only as simple as the snowball illustration seems to make it. Most people are still praying for snow... Link to comment Share on other sites More sharing options...
Guest ninhao Posted July 26, 2013 Share Posted July 26, 2013 GoldenEagle hello, I like this method if all the debts have similar interest rates. However; if there is a debt with much higher interest rate it would be best to clear it first regardless of the size. What do you think ? Link to comment Share on other sites More sharing options...
GoldenEagle Posted July 29, 2013 Group: Royal Member Followers: 4 Topic Count: 764 Topics Per Day: 0.18 Content Count: 7,626 Content Per Day: 1.80 Reputation: 1,559 Days Won: 44 Joined: 10/03/2012 Status: Offline Author Share Posted July 29, 2013 People who simply seek to address problems through logical means without regard for the principalities and power, the rulers of darkness in high places who drive others through fear, insecurity, doubt and other means, mean well for sure but truly miss the mark when it comes to helping. Many times they simply add insult to injury. If it were only as simple as the snowball illustration seems to make it. Most people are still praying for snow... Sorry I dont' understand what you mean? Possible to rephrase? God bless, GE Link to comment Share on other sites More sharing options...
GoldenEagle Posted July 29, 2013 Group: Royal Member Followers: 4 Topic Count: 764 Topics Per Day: 0.18 Content Count: 7,626 Content Per Day: 1.80 Reputation: 1,559 Days Won: 44 Joined: 10/03/2012 Status: Offline Author Share Posted July 29, 2013 GoldenEagle hello, I like this method if all the debts have similar interest rates. However; if there is a debt with much higher interest rate it would be best to clear it first regardless of the size. What do you think ? While I agree that it would be best to pay off the highest interest account first from a purely financial outlook... Sometimes paying off a $1,000 loan verses a $50,000 helps to create momentum. Just as in with sports momentum is a great motivational tool. Plus people like to have victories. A bunch of small short-term victories end up adding up to a long-term victory with debt. Would you agree? God bless, GE Link to comment Share on other sites More sharing options...
Guest ninhao Posted July 30, 2013 Share Posted July 30, 2013 GoldenEagle hello, I like this method if all the debts have similar interest rates. However; if there is a debt with much higher interest rate it would be best to clear it first regardless of the size. What do you think ? While I agree that it would be best to pay off the highest interest account first from a purely financial outlook... Sometimes paying off a $1,000 loan verses a $50,000 helps to create momentum. Just as in with sports momentum is a great motivational tool. Plus people like to have victories. A bunch of small short-term victories end up adding up to a long-term victory with debt. Would you agree? God bless, GE If a person is financially irresponsible they may need motivation to clear a debt this is true. However; it is better advised to always clear the debt with highest interest accumulation first because this will save money and also reduce the total term of debt. If a person in debt can see the figures modeled on paper it can be very motivating as well imo. Link to comment Share on other sites More sharing options...
GoldenEagle Posted July 30, 2013 Group: Royal Member Followers: 4 Topic Count: 764 Topics Per Day: 0.18 Content Count: 7,626 Content Per Day: 1.80 Reputation: 1,559 Days Won: 44 Joined: 10/03/2012 Status: Offline Author Share Posted July 30, 2013 GoldenEagle hello, I like this method if all the debts have similar interest rates. However; if there is a debt with much higher interest rate it would be best to clear it first regardless of the size. What do you think ? While I agree that it would be best to pay off the highest interest account first from a purely financial outlook... Sometimes paying off a $1,000 loan verses a $50,000 helps to create momentum. Just as in with sports momentum is a great motivational tool. Plus people like to have victories. A bunch of small short-term victories end up adding up to a long-term victory with debt. Would you agree? God bless, GE If a person is financially irresponsible they may need motivation to clear a debt this is true. However; it is better advised to always clear the debt with highest interest accumulation first because this will save money and also reduce the total term of debt. If a person in debt can see the figures modeled on paper it can be very motivating as well imo. I agree. Say for example these are the debts... $1,000 at 10% $10,000 at 15% $20,000 at 12% While paying off the two larger debts (10k and 20k) respectively makes the most sense... Someone who is say 31k in debt might benefit from paying off the 1k debt first to celebrate that victory before moving onto the larger debts. Just saying... God bless, GE Link to comment Share on other sites More sharing options...
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