Re: Snowball Debt Reduction - Myth or Magic?
What is it Dave Ramsey calls it, a 'quick fix', right? You get so inspired paying of that first small one that it keeps you motivated and seeing that it does work. Like dieting. If you diet for a month and see no weight loss then you usually get discouraged and quit dieting. Same with paying stuff off. If you start with your highest interest and that one happens to be your highest debt then it stands to reason that you could possibly the type to get discouraged easier, cause it takes so long to get that first one done.
I'm going with Dave Ramsey on this one. Gonna pay off the smallest to largest, regardless of interst.
|