Comments on: Alternate Debt Snowball Theory: How Annoyed Are You?

By: Rebecca

Rebecca — Mon, 23 Jun 2008 18:56:22 +0000

I like the most annoying debt plan because I agree that the personal debts have the most amount of guilt attached to them and guilt is the lowest vibrational energy of all the emotions so I personally vote for this theory for this reason.

Rebecca
http://www.remodelingreconkitchenplans.com

By: Matt

Matt — Thu, 08 May 2008 00:35:07 +0000

No one mentioned the key actor in eliminating debt. That is of course to avoid creating additional debt. The method I employ is this: I want to be out of debt by the time I am 49. That means that I pay a fixed amount to each bill and never lower it. Then I focus extra earnings (i.e. 1/2 of raises to THE SMALLEST DEBT. Then I take the 1/4 and increase my 401k.The rest is spending money. I also pick up side work and place that money in an emergency fund. That way I do not use credit if car needs repairs. I also calculate my tax refunds into this plan, I have my debt (195,000) being paid off in 2014. But the main debt will be gone by 2011 with 3 additional years to pay the house off.

By: Janni

Janni — Wed, 26 Mar 2008 00:34:13 +0000

Snowballing debt payments means to transfer credit card debt from a high interest rate card to a low interest rate card. By doing this you pay a greater amount of money towards the balance and less interest on debt.

By: We’re Interest Order - How About You? | I've Paid For This Twice Already...

Fri, 25 Jan 2008 10:01:27 +0000

[...] a clear head candidate), lowest balance to highest (often the heart’s choice), or simply start with the debt that bothers you the most (your gut speaks). So what do you [...]

By: hank

hank — Wed, 23 Jan 2008 04:38:39 +0000

First time visitor, stumbled it (thumbs up!). Can’t believe I haven’t come across your site yet. LOVE the layout! RSS’d up! As far as the post, no kidding. I paid off the last of my credit cards last year, and it is nice to be out. I used a 4th method. I got more money than I owed on my credit cards (raise) and then I paid them off and didn’t rack them up again.

By: Lily

Lily — Sat, 01 Dec 2007 13:56:31 +0000

I’ve been debating which theory to apply as loans 1 &2 (towards a home purchase) are against my 401K and don’t affect my credit history. Loan 3 is a student loan and has the highest payment relative to the amt owed. Loan 4 ,a personal loan borrowed to clear up debt to secure the mortgage, has a high interest rate and a high annoyance factor. Also annoying, Loan 5, a credit card that’s used to gap my income shortfall. And 6, another student loan on a graduated payment plan that’s set to readjust to a higher payment next year. In addition to the debts listed I have a motgage (100K) and home improvement loan (20K).

I’m leaning towards knocking off #3 first, opening a credit card ( 0% APR /12mo) to transfer the balance of #4. But if I pay off #1 first I can reborrow the money to put towards #4 ( at a lower interest). Any thoughts?

1.$1400 $60 5.95%
2.$1500 $30 5.95%
3.$1800 $120 5%
4.$3300 $150 15%
5.$4000 $60 12%
6.$15000 $113 7.8%

By: Mrs. Micah

Mrs. Micah — Sat, 13 Oct 2007 17:00:41 +0000

We’re doing the higher-interest and most-annoying simultaneously. Because as fellow math-minded folks, Mr. Micah and I couldn’t stand the high interest 30% (!!!) on his credit card. So that’s paid off and we won’t put more on it.

While Trent’s right that this may not work for everyone because they might get too comfortable, it’ll at least get them down to one debt. And if they’re motivated to pay off debt, they’ll do it, IMO.

By: I started using an RSS feed reader, and I found my favorite post ever « I’ve Paid For This Twice Already…

Wed, 08 Aug 2007 00:43:50 +0000

[...] ever (also her most popular post, so it really doesn’t need my publicity lol). It is called Alternate Debt Snowball theory: How Annoyed Are You? and I just LOVE [...]

By: rob in madrid

rob in madrid — Mon, 23 Jul 2007 18:53:27 +0000

Reader number 137

I work on the principal of getting rid of payments.

Alternative is to get rid of CC firsts as you can make extra payments anytime you have a bit of spare cash

By: Kira

Kira — Thu, 19 Jul 2007 23:11:00 +0000

I love the annoyance theory! Currently I’m paying off my $600 Dell bill (lowest balance). Even though most of it is at 0%, it really torkes me off that they have $112 worth of charges at 24%. So - in that case it’s the most annoying and the one I’m going to pay off first. Then will be my next highest APR - also a lower balance.