Comments on: The Debt Snowball Plan

By: Annie @ Credit Dispute

Annie @ Credit Dispute — Mon, 27 Jul 2009 07:56:44 +0000

This credit card debt relief option will not work for everyone and fortunately, there are other alternatives for getting out of debt. It is just a matter of deciding what is going to work best for you.

By: Chris Hutcherson

Chris Hutcherson — Mon, 29 Sep 2008 20:30:26 +0000

The biggest thing ever to help our family was reading Total Money Makeover by Dave Ramsey. Not only did we cut our credit card bills in half each month, but we only took out half the amount of trash as we normal did, one can instead of two! Amazing how far a little effort goes.

By: Stephanie

Stephanie — Wed, 06 Aug 2008 23:58:47 +0000

@David – this entry is kind of old (if you look at the date at the top, you’ll see I wrote the original post in January of 2007!), but thank you for your thoughts. It may not come across in the entry, but what you described is EXACTLY what I was talking about in the entry, and exactly what I did, although it took a while. Now both the car and the credit card are paid off, and I’m paying off student loan interest as soon as I can.

By: David

David — Wed, 06 Aug 2008 20:35:25 +0000

While I am by no means a financial expert, I think you’re looking at your student loan and car payment wrong.

What I’d recommend is continue paying the same to the car (0% is still 0%), but only save enough to give yourself a small cushion… then put all extra money into paying off the credit card. Your goal should be to have the car and credit card completely paid off before your student loan starts. If you pay off both before the student loan payements start, then save everything you can to put towards the loan later.

By: Student

Student — Fri, 02 May 2008 20:39:58 +0000

Thank’s, very interesting article. Congratulations! It’s a very good plan.

By: Janni

Janni — Tue, 29 Apr 2008 16:31:02 +0000

The debt-snowball method is simple, but many people dont think of it until they have someone explain it to them. The method contains only a few easy to follow steps. First, the person must list all his debts in order from smallest to largest. If two debts have a similar balance, then he should payoff the debt with the largest interest rate first. It may make more sense to pay off all the debt with the largest interest rates first, but an important factor of the debt-snowball method is the role that psychology plays. The borrower takes on a more positive attitude when he sees fewer bills every month. If the borrower has the willpower, it may be better to pay off the balances with the highest interest rates first, but this theory is not part of the debt-snowball method.

By: IVA

IVA — Tue, 04 Mar 2008 17:08:41 +0000

Good advide, The Debt Snowball Plan is for everyone who has debts. Other options may be to negotiate your debt, or make an individual Voluntary Arrangement with your creditor. We have to make an effort to avoid the debts.

By: John

John — Fri, 23 Nov 2007 05:56:12 +0000

Seems like an another good way to get rid of the debts. Good post man, it’s worth it

By: ispf

ispf — Sat, 13 Jan 2007 21:14:00 +0000

Sound like a good plan. Good Luck!

By: Stephanie

Stephanie — Sat, 13 Jan 2007 16:29:00 +0000

ispf: Don't worry about the long comment, it just means you care about what you're writting!

Thank you for the advice. I do hope to pay down my credit card as soon as possible, and then start creating a cushion for when I have to start paying my student loan. However, I don't see any advantage to paying extra into my car loan, since paying it faster won't save me any money (since there's no interest). Instead, I want to put any extra I could pay into the bank, where it can pile up for my "student loan cushion."

I do however want to...

Make all my payments each month
Pay off my credit card as fast as possible
Start putting aside money for my futute student loan payments

I hope my plan settles your worries! =) If not, suggestions are always welcome.