Comments on: Debt Snowball – How a Simple Plan Can Help You Get Out of Debt http://notmadeofmoney.com/blog/2009/09/debt-snowball-%e2%80%93-how-a-simple-plan-can-help-you-get-out-of-debt.html Save Money - A Personal Finance Blog By A Husband And Wife Wed, 17 Mar 2010 20:19:32 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: David@ yourfinances101 http://notmadeofmoney.com/blog/2009/09/debt-snowball-%e2%80%93-how-a-simple-plan-can-help-you-get-out-of-debt.html/comment-page-1#comment-231743 David@ yourfinances101 Sat, 19 Sep 2009 13:23:30 +0000 http://notmadeofmoney.com/blog/?p=2063#comment-231743 I would really question this strategy. To me, it is taking a "psychological" approach to the problem rather than a "logical" approach. If I understand it correctly, you are not taking into account the interest rates associated with each debt. Sure, you will be able to gain more motivation using this method, because you can cross debts off of the list faster. However, it will cost you more money in interest in the long run if you're larger debts carry higher interest rates. Trust me, I was as bad in debt as anybody out there, but when I got serious about it, I organized my debt according to the interest rate associated with each debt, rather than their size. I would really question this strategy. To me, it is taking a “psychological” approach to the problem rather than a “logical” approach. If I understand it correctly, you are not taking into account the interest rates associated with each debt. Sure, you will be able to gain more motivation using this method, because you can cross debts off of the list faster. However, it will cost you more money in interest in the long run if you’re larger debts carry higher interest rates.

Trust me, I was as bad in debt as anybody out there, but when I got serious about it, I organized my debt according to the interest rate associated with each debt, rather than their size.

]]> By: Peter Luke http://notmadeofmoney.com/blog/2009/09/debt-snowball-%e2%80%93-how-a-simple-plan-can-help-you-get-out-of-debt.html/comment-page-1#comment-231736 Peter Luke Fri, 18 Sep 2009 16:07:38 +0000 http://notmadeofmoney.com/blog/?p=2063#comment-231736 Great post and it is true. I would like to take on this strategy and see what happens. <a href="http://www.http://www.mywellofwealth.com/" rel="nofollow">My Well Of wealth</a> Great post and it is true. I would like to take on this strategy and see what happens.

My Well Of wealth

]]> By: Craig http://notmadeofmoney.com/blog/2009/09/debt-snowball-%e2%80%93-how-a-simple-plan-can-help-you-get-out-of-debt.html/comment-page-1#comment-231735 Craig Fri, 18 Sep 2009 16:05:09 +0000 http://notmadeofmoney.com/blog/?p=2063#comment-231735 Like anything else, having a plan works, and the motivation comes after to keep it going on. Like anything else, having a plan works, and the motivation comes after to keep it going on.

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