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    #16
    Originally posted by maat55 View Post
    The snowball(smallest to largest balance) method is meant to be intense. If you plan to go slowly, you would be better off paying the highest interest rates first.
    Maybe. But I'm still new at this. We'll be putting a good amount of money towards the first card every month, but it's still going to take us about 2 months to pay it off completely. Slowly would be the wrong word, but it feels pretty intense by looking at my payment plan.

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      #17
      Originally posted by maat55 View Post
      The snowball(smallest to largest balance) method is meant to be intense. If you plan to go slowly, you would be better off paying the highest interest rates first.
      The highest interest rate to lowest interest rate method is also meant to be intense.

      You should be snowballing your payments either way.

      It's the same amount of money coming out of your account each month, it's just a matter of which debt to pay first.

      In the typical snowball, you snowball lowest balance to highest balance. But you can also snowball highest interest to lowest interest. Same principal, when 1st card/debt (highest rate) is paid off, add that payment to the next card/debt (2nd highest rate). Rinse and repeat till debt is gone!

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        #18
        I think each situation and person is different. If my husband and I had started with our highest debt and interest rate, we would have probably lost heart and patience. We had a couple of smaller debts. One was about $275.00 and the other was a little over $800.00. In order to keep and stay interested, you have to see some kind of progress. We continued paying minimal payments on all of the other debts including the $800. one but added more to the $275.00. Because the $275.00 was smaller, all kinds of ideas that were doable came as to getting rid of the debt. We cut our food bill down by 10%. We lowered our usage of electricity by not leaving lights on, etc. We stopped going out to eat - even at McDonald's. Whatever I didn't use in my monthly gas budget was added to pay off the smaller debt. For that matter, any money leftover from a budgeted amount was added to the the payoff. We didn't go on a vacation. We had a change jar and that was added also. I used coupons. We changed our homeowners insurance. We sold aluminum. My point is that with smaller amounts to pay off - it is easier to find smaller and attainable ways to pay off the debt. We also kept a debt chart and date of payoff. As each debt was paid of, we checked and crossed it out and put the final date paid and the amount of interest saved. Once you start your plan - you'll think of all kinds of ideas to pay off the debt. We also awarded ourselves something of small value. For me, it was a book that I wanted. I wrote on the inside cover that this book was my reward for paying off the first debt. I came across the book about two months ago. It's a reminder of where we were. A reward for you to be to go to a free concert but maybe eat out at an inexpensive restaurant. Rewards are important.
        Last edited by Aleta; 03-07-2011, 05:33 AM.

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          #19
          As others have said - it works, just stay away from the cards in the process. Best of luck.

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            #20
            Originally posted by bjl584 View Post
            Sounds like you have a good plan. My only advice would be to make sure that you don't continue to use your cards or to rack up debt in other areas (car loans, etc.) Just stay focused on the goal of becoming debt free.
            True this, true this. On the way to being debt-free, temptation to use cards (since you are paying off anyhow) will be very strong especially when you are feeling the tightness. Also, I have heard of the Snowball Method too. Would be nice to know more about it though. Hope more stuff be thrown in this thread. I find it interesting.

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