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That does sound rational though, by paying off the small debts you reduce the amount of information you have to comprehend. It may not be ideal financial advice
by kagamine 11y ago
That does sound rational though, by paying off the small debts you reduce the amount of information you have to comprehend. It may not be ideal financial advice, but it will make the remaining debt easier to manage on an emotional level. You also get the peace of mind that those smaller problems will now not spiral into larger problems. You are free to focus on a resolution to the problem.
- johnward 11y agoI'm following the snowball method now. The reason I like it is that I free up money faster. If I have $4000 on a credit card and the minimum is $100 a month. If I pay that smaller balance off quicker I free up that $100 a month to be used towards the next debt.
- stevesearer 11y agoWe had a few small debts (2 student loans, credit card, car payment) and when a friend explained the debt snowball concept it was definitely the key factor in us paying off our debts faster. For me it felt like I was back in control because I actully had a plan that made sense and seemed actually doable.
- deleted 11y ago[deleted]
- JustSomeNobody 11y agoAnd I think this is the key. Debt is a weight on people and it wears them down. You need to build that person back up even if that means not taking the absolute most efficient means to pay off the total debt.
- Esox 11y agoI think you hit the nail on the head. My wife and I are using the debt snowball method and I just payed off one of our debts in full yesterday. It may not have been the largest debt or the one with the highest interest rate but it's one thing I don't have to worry about now. It's one fewer company I have to deal with monthly. It instills a sense of hope that "we can do this!" that I'm hoping will bolster our budgeting and help us tackle the larger debts.