I like your plan! Recently, I had the chance to interview Jade Warshaw about paying off $460k in debt. She had some excellent advice if you want to check out our interview: ruclips.net/video/EED72a3HItw/видео.htmlsi=sOx4pPh-w0ivSTVb
For me avalanche or a mix of the two. Mainly because snowball doesn't work when you keep having new medical debts. It's like playing Whack-a-mole. Pay one off, a nother comes in so i never get to snowball. At least with avalanche i know I'm cutting down the interest on some debts which opens cashflow. Also being disabled and currently unable to work doesn't help matters.
These questions are interesting because personal finance is an empiracle field - meaning there is always a mathematically correct answer. Paying off your highest interest debts first is the 'best' way mathematically to tackle debt. However, the emotional aspect of turning small wins into bigger wins is SUPER important. I think is a total case by case type of question as it will vary based on someone's financial position and their emotional relationship with money and debt
My counter to that would be - if you have more than one high interest debt (which you do if you’re choosing what order to attack them) - then the ‘technical’ best may be less applicable because if that is your preference, you’d arguably be less likely to be in that position in the first place. There is no ‘right’ answer but I think snowball for people with 3 or more high interest debts is close to a ‘right’ answer
Which do you prefer? Debt snowball or debt avalanche?
I pay off what is my biggest monthly payment. Which is my car. Once I pay my car off.I'll have more money to pay off other debts.
I like your plan!
Recently, I had the chance to interview Jade Warshaw about paying off $460k in debt. She had some excellent advice if you want to check out our interview: ruclips.net/video/EED72a3HItw/видео.htmlsi=sOx4pPh-w0ivSTVb
@@MarriageKidsandMoney thanks I would love to listen.
@@shar1202 I appreciate you checking it out! Thanks!
For me avalanche or a mix of the two. Mainly because snowball doesn't work when you keep having new medical debts. It's like playing Whack-a-mole. Pay one off, a nother comes in so i never get to snowball. At least with avalanche i know I'm cutting down the interest on some debts which opens cashflow. Also being disabled and currently unable to work doesn't help matters.
Im doing the debt squeeze
Paying off the highest and lowest
These questions are interesting because personal finance is an empiracle field - meaning there is always a mathematically correct answer. Paying off your highest interest debts first is the 'best' way mathematically to tackle debt. However, the emotional aspect of turning small wins into bigger wins is SUPER important. I think is a total case by case type of question as it will vary based on someone's financial position and their emotional relationship with money and debt
Agreed! There's no one right answer ... only your own personal "right" answer.
My counter to that would be - if you have more than one high interest debt (which you do if you’re choosing what order to attack them) - then the ‘technical’ best may be less applicable because if that is your preference, you’d arguably be less likely to be in that position in the first place. There is no ‘right’ answer but I think snowball for people with 3 or more high interest debts is close to a ‘right’ answer
Debt snowball unless similar balances and a big difference in interest rate. Debt snowball simplifies your life and is easier to stick to.
Great points!