Avalanche set and forget split up pay off bank lower interest rate if u spit it up into little sections. Yes u have to wait but it’s soo goodits manageable , I like snowball but doing the other to try to create change thanks for your video
The debt snowball method is effective, yet investing in assets such as rental properties or syndications might be a more strategic use of available funds than debt repayment. Targus primarily targets individuals with lower net worth who are burdened by debt. However, for those with a net worth exceeding $1 million, it's often more advantageous to focus on wealth accumulation rather than debt elimination. Repaying debt is not necessarily synonymous with achieving financial freedom.
A major issue with both of these models is that debt isn't a cut and dry thing. Neither is always better - mathematically or emotionally. The Snowball fails in situations where someone has a slightly larger debt with a substantially higher rate. If someone has $1,000 at 20% and a $750 at 5% the snowball will take significantly longer to pay off because the interest on the higher debt will overcome the additional payments. The Avalanche is also flawed. Many loans have rates within fractions of each other. If you have $2,000 at 4.4% and $500 at $4.2% then hitting the higher interest account first will take longer and cost more than killing the smaller account and using that money to more quickly pay off the larger. Rather, we need to use a common sense combo of the two. Pay off the substantially smallest loans first so that you can rapidly use that money to increase your contributions. Next hit the substantially highest interest rate debt. Then use your judgement to figure out which remaining accounts are best to pay next. If rates are within a couple points, use the snowball. If amounts are within a few hundred dollars use the avalanche.
I had to choose the avalanche method just for the debt repayment app I chose to actually give me a payoff date with my numbers. Showed me how much slower debt snowball would be and that dealing with interest was key for me. Agreed, flaws in both.
My reasoning will not allow me to ignore the math, higher interest rates demand attention. Debt avalanche for me.
I agree with trying them both I started with snowball then switched to avalanche then snowball again. The key is to be consistent/disciplined.
My smallest balance is my highest interest. I guess i have a win win
That has happened for me too. Love this win win situation.
Perhaps a combination of both would be idea.
Debt snowball for the win!
Avalanche set and forget split up pay off bank lower interest rate if u spit it up into little sections. Yes u have to wait but it’s soo goodits manageable , I like snowball but doing the other to try to create change thanks for your video
I did the math. I used part of my 401k to pay off my student loan.
The debt snowball method is effective, yet investing in assets such as rental properties or syndications might be a more strategic use of available funds than debt repayment. Targus primarily targets individuals with lower net worth who are burdened by debt. However, for those with a net worth exceeding $1 million, it's often more advantageous to focus on wealth accumulation rather than debt elimination. Repaying debt is not necessarily synonymous with achieving financial freedom.
exactly, debt is the number one wealth killer
Great video! Thanks! 👏👏👏
Great info 😀
A major issue with both of these models is that debt isn't a cut and dry thing. Neither is always better - mathematically or emotionally.
The Snowball fails in situations where someone has a slightly larger debt with a substantially higher rate. If someone has $1,000 at 20% and a $750 at 5% the snowball will take significantly longer to pay off because the interest on the higher debt will overcome the additional payments.
The Avalanche is also flawed. Many loans have rates within fractions of each other. If you have $2,000 at 4.4% and $500 at $4.2% then hitting the higher interest account first will take longer and cost more than killing the smaller account and using that money to more quickly pay off the larger.
Rather, we need to use a common sense combo of the two.
Pay off the substantially smallest loans first so that you can rapidly use that money to increase your contributions. Next hit the substantially highest interest rate debt. Then use your judgement to figure out which remaining accounts are best to pay next. If rates are within a couple points, use the snowball. If amounts are within a few hundred dollars use the avalanche.
I had to choose the avalanche method just for the debt repayment app I chose to actually give me a payoff date with my numbers. Showed me how much slower debt snowball would be and that dealing with interest was key for me.
Agreed, flaws in both.
Avalanche all the way. It simply makes more mathematical sense and will save you $$ on interest.
Get to the point
زيزسمزسميظيميظيم