What Is Wrong With The Debt Snowball?
The Debt Snowball.This technique was made famous by the great American Dave Ramsey, but it has one major flaw...
In order for it to be effective, you have to be the most un-disciplined person (in order to get deep in debt) who suddenly became the most disciplined (so you can pay off that debt).
Why is this a problem? Most people can't overcome their troubles, at least not without some help. Don't get me wrong, those who need a constant pat on the back should snowball away, but what about those who have a tendency to slip? I have that problem, and I am not afraid to admit it!
I occasionally let myself slip and purchase some books, video games, or DVDs.. Everyone does, we're human!
Why should we, knowing that we are going to slip, pay off the smallest debt first?
This will only prolong the pain of paying people money for borrowing their money!
The conclusion?If you need the constant 'win' of getting a debt paid off, please, use the debt snowball method.
However, if you are okay with admitting that you will struggle with your attempts to pay down your debt. Why use the method that will extend that pain of interest payments even farther?
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