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Originally Posted by Ima saver
Have any of you tried the snowball debt reduction method?
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We did at one point in our life. We had consumer debt that we paid mostly minimum payments on, to save for 20% downpayment on our house.
After we got the house, we worked the debt snowball to get all of it paid off. However we used both methods.
We used the payoff lowest principle first method until a couple of the bills were gone, and then switched to the higher interest rate second for the remainder.
Now, the only reason we borrow on the CCs is to use the balance transfer into checking at a low rate, and transfer that amount into savings at a higher rate. I think we made $1,050 last year using this technique (which included paying any minimal interest on the cards, balance transfer fees, etc.