a benefit of debt snowball

**gmarie** · 11-04-2010, 10:38 AM

When I was paying bills last month, it occurred to me how much easier it has become... my stress and anxiety level is way down!

We still have 70k in debt, however paying the debts smallest to largest has eliminated several cc payments... For me, I was ALWAYS stressed out, wondering if I missed a due date, because there were so many!! Now, paying bills is much more manageable, and even fun to see at the end of the month how much extra we can put toward the snowball!

For me, it has always been the store CC that I rarely use and somehow "forgot" about when paying bills.. and as a result have paid a fortune in late fees over the years.

I guess that's how those shady debt consolidation companies stay in business!

**Russ** · 11-04-2010, 10:43 AM

Awesome! Always nice to hear someone enjoying success.

**imagine** · 11-04-2010, 11:41 AM

Originally Posted by gmarie

When I was paying bills last month, it occurred to me how much easier it has become... my stress and anxiety level is way down!

We still have 70k in debt, however paying the debts smallest to largest has eliminated several cc payments... For me, I was ALWAYS stressed out, wondering if I missed a due date, because there were so many!! Now, paying bills is much more manageable, and even fun to see at the end of the month how much extra we can put toward the snowball!

For me, it has always been the store CC that I rarely use and somehow "forgot" about when paying bills.. and as a result have paid a fortune in late fees over the years.

I guess that's how those shady debt consolidation companies stay in business!

I'm new to debt reduction and have a question.
How does playing smallest to biggest eliminate several payments? Don't you have to pay at least the minimum on all the cards/debts?

**Russ** · 11-04-2010, 11:45 AM

Yes, you still have to pay the minimum on all payments.

**imagine** · 11-04-2010, 12:06 PM

Originally Posted by Russ

Yes, you still have to pay the minimum on all payments.

So would the elimination of payments the OP was talking about be when you pay off something?

**Russ** · 11-04-2010, 12:14 PM

that is correct

**khaski** · 11-04-2010, 03:21 PM

Hehe...I know what you mean about the 'fun' seeing how much you can snowball- today I handed over a $1k check to our credit union for our subaru wagon payment- only $1k left on it, it was over $7k back in July, should be paid over about 2.5+ years early. Who knew I'd so look forward to PAYING OUT $? But I do...the more I pay out, the faster those balances go down....and when you're budgeting and organized, the amounts due are the same as before you began the process, but it's less tress KNOWING you've got it all planned out, on paper.

**Ilovesewing** · 11-04-2010, 08:40 PM

Good for you!!

It has been the opposite for me - my snowballing is creating stress! My dh and I are on our '8 year plan' to retirement, and are snowballing our way through a couple of credit cards, a truck payment and the mortgage (to be paid last). In 8 years, everything including the house will be paid for and we can retire comfortably on his pension. However, the more I pay, the more I re-work the budget, and the more I go over the figures, and over them, and over them, and over them...I make myself crazy, honestly! The stress comes because the closer things get to a zero balance, the more I want everything to be zero NOOOOWWWWW. And, of course, that isn't happening....it will take 8 years... *sigh*

We'll get there eventually!

**littleplum** · 11-04-2010, 09:29 PM

Originally Posted by imagine

I'm new to debt reduction and have a question.
How does playing smallest to biggest eliminate several payments? Don't you have to pay at least the minimum on all the cards/debts?

Well, you pay the minimum on all the debts, but you put everything extra you have on the smallest. So, as you keep paying down the smallest, it goes away (hopefully quickly - our first two got wiped out in month one). You still take those payment amounts and add them to the next debt on your list, but as you go, you eliminate payment due dates.

When we first started, we had 10 due dates to remember, just on credit accounts. That didn't include things like utilities and rent. Now we are down to just two credit accounts, and they both have the same due date (student loan). Much easier and much less stress.

**frugal.lass** · 11-04-2010, 09:33 PM

Ilovesewing,
I know how you feel, I would be so impatient to pay off my bills. When I finally had my budget figured out and was putting money towards my debts, I just wanted it to be done, not because I was worried about interest rates or being in debt...I just wanted to accomplish my goal!! Now that I'm debt free and saving money for a down payment, I'm impatient over that.

**mndtrp** · 11-05-2010, 12:21 PM

Originally Posted by gmarie

When I was paying bills last month, it occurred to me how much easier it has become... my stress and anxiety level is way down!

This is the primary reason I eschew debt and practice frugality. I have more energy available to put towards the positive things in my life.

**khaski** · 11-05-2010, 01:08 PM

The time will pass one way or another, so good for you for sticking to it and making a plan that lets you see the light at the end of the tunnel! 8 years seems like a lot of time, but think of the joy at the end of it, when all's paid off!