Comments on: FOCUS On The Debt Snowball

By: G@LVNV Funding

G@LVNV Funding — Tue, 27 Jul 2010 19:25:12 +0000

I think Ramsey’s method of going with the easiest one first is so that people trying to get debt free will not lose heart, but will stick with it. Motivation is very important!

By: Bern

Bern — Tue, 08 Jun 2010 12:32:14 +0000

While Dave Ramsey may have a great concept with the debt snowball, I disagree with how you order the debts to pay off.

He says order them with the smallest payoff or balance first. I say to use the DOLP method created by David Bach.

This is the most efficient way to pay off your debt. It orders your debts in a way to make your money work hardest for you. People will find out that their house should be the last thing they try to pay off…
.-= Bern´s last blog ..Save Money by Using Ebay =-.

By: Little House in the Valley

Little House in the Valley — Mon, 07 Jun 2010 13:07:44 +0000

[...] Away Debt with Focus on the Debt Snowball. A great strategy to pay off debt. Remember my crummy line of credit? I’m using this theory [...]

By: Yakezie Carnival @ Beating Broke

Yakezie Carnival @ Beating Broke — Sun, 06 Jun 2010 05:02:30 +0000

[...] Focus on the Debt Snowball [...]

By: Financial Samurai

Financial Samurai — Fri, 04 Jun 2010 05:47:06 +0000

Jeff, what would you do? My smallest revolving debt is a school loan I took out a while ago. But, the rate is only 2.65%! It's literally free money given I get 4% return on my CD. Wouldn't it be best to pay off my mortgage and keep my student loan instead? .-= Financial Samurai´s last blog ..Only The Poor or Super Rich Say, “Money Can’t Buy Happiness” =-.

By: Jeffrey Kosola

Jeffrey Kosola — Thu, 03 Jun 2010 21:27:27 +0000

@James, I happen to think the opposite about goals. I’m currently sharing mine with the world. I find that it motivates me to achieve them. I’m not a person who likes to be wrong, so I will continue to bust it to reach the goals. I agree that most people will not believe you can achieve your goals, but usually they are lazy people who can’t achieve their own goals anyway. Not many people believe I can pay down 101K in two years, but I will and that’s my focus. Not to just prove people wrong, but to prove that once you know what to do, anything can be achieved.

Ok James, share one goal with us and I promise to support you until you reach it

By: Jeffrey Kosola

Jeffrey Kosola — Thu, 03 Jun 2010 21:15:12 +0000

@Mysti I know how emotions can effect your debt snowball. I worked my pizza job for 11 months before I realized the extra money was just supporting my current lifestyle. It sounds like you and you man have to kick it high gear (get outside help, ie financial coach) or get on the same page and kick the crap out of the debt. The shot gun approach will not work for you. Get the budget on paper and begin the sacrificing. I know you guys are working to bring in extra income, but you need to take another look at how you are addressing your debt. Guessing at your debt freedom date isn’t going to cut it either. Use the link I included in the comment to JanB and plug your numbers in. If you do not like the date, you need to figure out a way to improve it. If you are stuck, I sent you a number a few months ago – use it

By: James

James — Thu, 03 Jun 2010 20:37:39 +0000

above and beyond focus i think you need personal daily reminders and positive reinforcement.

one thing they say you should not do when you have a goal is tell anyone about it…you might ask why but the reason is simple most people will tell you that you can’t achieve your goal or it can’t be done. Don’t listen to them GO for it and don’t look back.

By: Mysti

Mysti — Thu, 03 Jun 2010 19:29:14 +0000

I totally know the snowball works logically. But emotionally, I have a hard time just paying the minimum. I always round things up. In the end, I might end up putting an extra $50 or so using the shot gun approach, even though most of the money is focused (we are FINALLY starting to see things go down….just a teeny bit). Then I kick myself when I realize I would have saved myself a weeks of debt if I took that $50 and put it into the debt I am currently snowballing!!

I am no where close to my debt freedom date. Other than I vowed it would be before my 40th birthday (but 38….or about 35 months…would be AWESOME…..not really realistic, but AWESOME!)
.-= Mysti´s last blog ..A Light Bulb Moment =-.

By: Jeffrey Kosola

Jeffrey Kosola — Thu, 03 Jun 2010 19:07:31 +0000

Hi Jan, the best way I’ve found to get out of the wishy-washy phase is to figure out your “debt freedom” date. Mine is Sept 2011 but I continue to work hard to improve that date. The quicker you focus on your debt the quicker you’ll be out of debt. I use the Vertex42 debt reduction calculator to plot and scheme my debt snowball. Here’s the link if you’d like to check it out. http://www.vertex42.com/Calculators/debt-reduction-calculator.html