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Discussion Starter · #1 ·
The only way that I would pay off debts lowest balance to highest balance would be if the interest rates line up highest interest rate to lowest interest rate.

Debts with the highest interest rates need to be paid off first. There are no professionals in the industry who would recommend otherwise.

I do agree with all other steps with the exception of 1.1 and the "Drive Free -- Retire Rich" video.
 

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Its all about getting some quick easy wins! If your highest debt was also the highest interest, it would take a much longer time for success to hit once and keep you rolling on the program to getting debt free. The snowball is all about getting some easy victories in the books to have a successful transition to being debt free.

Again, this is his program, and it is for the masses.
 

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Discussion Starter · #5 ·
Do you understand the point of doing it the way he suggests? Have you done any of the math using the snowball method?
I was taught in school that paying off the highest interest rate first was the best method mathematically.
 

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Discussion Starter · #6 ·
Its all about getting some quick easy wins! If your highest debt was also the highest interest, it would take a much longer time for success to hit once and keep you rolling on the program to getting debt free. The snowball is all about getting some easy victories in the books to have a successful transition to being debt free.

Again, this is his program, and it is for the masses.
So it is more of a moral victory versus using the best method for financial success. I understand your point.
 

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Discussion Starter · #7 ·
All good questions Russ and I wonder if the answer is NO.
...and the Gorilla is attacked again.

You could learn from my knowledge if you would just have an open mind. Living in the jungle all my life has taught me a lot of life's lessons.
 

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I was taught in school that paying off the highest interest rate first was the best method mathematically.
Mathematically, yes.
This is also about speed.

In the debt snowball, you list your debts smallest to largest by amount owed. Don't worry about interest rates. We don't care if one debt has a 2% rate and another one has a 22% rate. If you'd done the math properly, you wouldn't have gone into credit card debt in the first place.
The point of the debt snowball is behavior modification. In our example, if you start paying on the student loan first because it's the largest debt, you won't see it leave for a while. You'll see numbers going down on a page, but that's it. Pretty soon, you'll lose steam and stop paying extra, but you'll still have all your debts hanging around.
Debt Snowball Breakdown - daveramsey.com
 

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...and the Gorilla is attacked again.

You could learn from my knowledge if you would just have an open mind. Living in the jungle all my life has taught me a lot of life's lessons.
I believe you yourself said .. Don't take it personally. She wondered out loud.
 

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Discussion Starter · #10 ·
I am sorry if I come off a little crass. Having to use a keyboard that is designed for humans is frustrating. It just does not fit my fingers. One of my hands is larger than the whole keyboard. Oh well, what's a gorilla to do?
 

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Discussion Starter · #11 ·
I believe you yourself said .. Don't take it personally. She wondered out loud.
You got me there Russ. I stand corrected. I offer my sincere apologies to nodmicks.
 

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Hi Gorilla, do you wish to share your debts with the rest of us? Perhaps the snowball method and it's benefits will be easier to understand with your own debts and income.
 

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Interest rate isn't a motivator. Getting quick wins is.

If we were good at math we wouldn't be in debt in the first place. :)

Low balance first, knock it out, you feel a victory. High balance high interest rate first, you take forever to get it done, you give up.

It's all psy-col-o-mal-ogic-al
 

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Two things- 1) yes, it's the moral victory that counts here. The idea is that when you see some actual traction going on, some actual movement towards erasing your debt, it will help keep you motivated. Nothing motivates like erasing those debts. Seeing a balance goes down feels good, but not half as good as writing that last check to pay something off completely and 2) While DR 'purists' will insist that anything that doesn't follow him to the letter isn't 'his' method, I think there's a little wiggle room there.

We are debt free except the house and followed his plan to get there, with a few minor exceptions. I still count it as 'following' Dave, even though we still put some in retirement while we worked on our snowball, and we have a credit card to this day, though we never carry a balance. Both big no-no's under DR, but I still give him credit for motivating us to succeed as we have. no one should follow ANY advice blindly. His methods are good. Adjust as necessary, and realize the consequences of those adjustment. For us, the 'consequences' would be taking a bit longer on our snowball as we did put into retirement throughout, and (I guess) the idea that we could charge that cc right back up if we were to become undisciplined. Not a big worry over here.
 
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Discussion Starter · #16 ·
Hi Gorilla, do you wish to share your debts with the rest of us? Perhaps the snowball method and it's benefits will be easier to understand with your own debts and income.
Thank you for your offer but I do not have any debt. I don't think DR qualifies a home mortgage as debt but even if he did my home is paid for. I have been very blessed and fortunate. It is time for me to give back.

Again, thank you for offering to help.
 
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Discussion Starter · #17 ·
Interest rate isn't a motivator. Getting quick wins is.

If we were good at math we wouldn't be in debt in the first place. :)

Low balance first, knock it out, you feel a victory. High balance high interest rate first, you take forever to get it done, you give up.

It's all psy-col-o-mal-ogic-al
I completely understand what you are saying and I can see how it would benefit some people to attack their debt using this technique. Thank you for helping to explain this concept.
 

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Discussion Starter · #18 ·
Two things- 1) yes, it's the moral victory that counts here. The idea is that when you see some actual traction going on, some actual movement towards erasing your debt, it will help keep you motivated. Nothing motivates like erasing those debts. Seeing a balance goes down feels good, but not half as good as writing that last check to pay something off completely and 2) While DR 'purists' will insist that anything that doesn't follow him to the letter isn't 'his' method, I think there's a little wiggle room there.

We are debt free except the house and followed his plan to get there, with a few minor exceptions. I still count it as 'following' Dave, even though we still put some in retirement while we worked on our snowball, and we have a credit card to this day, though we never carry a balance. Both big no-no's under DR, but I still give him credit for motivating us to succeed as we have. no one should follow ANY advice blindly. His methods are good. Adjust as necessary, and realize the consequences of those adjustment. For us, the 'consequences' would be taking a bit longer on our snowball as we did put into retirement throughout, and (I guess) the idea that we could charge that cc right back up if we were to become undisciplined. Not a big worry over here.
I am definitely on board with this sentence from your post: No one should follow ANY advice blindly.

Thank you for taking the time to reply.
 

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Discussion Starter · #19 ·
Do you have debt?
No debt of any type. I have been very blessed.

Congratulations to you as I see that you are debt free as well.
 

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Thank you for your offer but I do not have any debt. I don't think DR qualifies a home mortgage as debt but even if he did my home is paid for. I have been very blessed and fortunate. It is time for me to give back.

Again, thank you for offering to help.
But you use a credit card. So, while you may pay it every month in full, until you do, you do have debt, however briefly.
 
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