While cooking dinner today, I was listening to a podcast discussing various methods to pay off debt. During the podcast, the hosts were speaking of a woman who was comparing the “Debt Snowball” method of Dave Ramsey to paying the debt with the highest interest first. In her opinion, paying higher interest first was a no-brainer because it costs less in the long run.
One of hosts mentioned that the reason some go for the”Debt Snowball,” starting with the smallest debt balance then moving to the larger, is to get a sense of satisfaction and accomplishment as you eliminate debt after debt. I totally agree!
In trying to pay down our debt, starting with the highest interest rate which was also our highest balance credit card, it seemed like the balance barely moved and I was often discouraged. Not only was I discouraged, but it was enough to think there was no point. We had multiple student loans and multiple credit cards, I really couldn’t see a reasonable end. Now, since focusing on smallest balance, we’ve paid off 3 of 4 student loans and 1 credit card. Also, those minimum payments that are no longer there have been shifted to pay off the next balance.
This last month has given us so much hope and I feel a sort of control again. We are taking this debt down!
What are your thoughts? How did you pay or how are you paying off your debt?