Debt snowball is overrated, my buddy proved me wrong in Tulsa

Everyone on here swears by the snowball method. Smallest debts first, feel the wins, keep going. I told my friend Dan that was the only way. He laughed and showed me his spreadsheet. He had a $4,800 credit card at 22% and a $1,200 medical bill at 0%. I said knock out the medical bill first. He said no, paid off the card in 7 months, threw everything at it. Still did the medical bill after. Total interest he saved? Around $380. My snowball plan would have cost him more. I felt dumb. He just shrugged and said math beats feelings. Anyone else tried the avalanche method and found it easier to stick with for bigger bills?

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1 Comment

alice1219d ago

Point out that the spreadsheet only works if people actually stick with it for seven months. Most folks don't. They get bored, the wins are too far apart, and they end up back on the card buying pizza. The snowball keeps people in the game because it pays off fast, and that's worth more than $380 in real life. Your buddy is the exception, not the rule, and most people aren't running his kind of math.