What is your personal debt reduction method aside the debt snowball method?

[mvdheuvel1983]

The debt snowball method is one of the most recommended strategies to get out of debt. How does it work?

You list your debts from smallest to largest and pay the minimum amount on everything except the smallest one. You prioritize paying off the smallest debt aggressively.

- consider selling off all the items you don't need.
- Consider working more jobs to increase your source income.
- Consider temporarily halting all investment, after which pour all your energy into paying off to the smallest debts.

By paying off the smallest debts first, the snowball effect kicks in and you move on to the next debt on the list until you pay off all of them. It is estimated that a person who follows this method religiously can become debt-free within 18 - 24 months.

However, the debt snowball method may not be effective if you have debts with specific payment dates that, if missed, could result in higher interest rates or a negative impact on your credit score. Nobody wants any of these.

Recently, I had some debts to pay and prioritized them based on urgency, regardless of their size. I had to pay them by or before the deadline. I didn't mind whether they were big debts or small debts. What mattered was meeting up with the deadline. This approach worked for me, although I'm not sure if it falls under the debt snowball method.

For those who have gotten out of debt more quickly, did you use the debt snowball method or another personal debt payment strategy that worked for you over the years?

* www.cashry.com/blog/the-debt-snowball-method-to-help-reduce-your-debt/

* www.citi.com/credit-cards/debt-management/debt-snowball

* www.bankrate.com/personal-finance/debt/debt-snowball/

* www.capitalone.com/learn-grow/money-management/debt-snowball-method/

* www.mamaandmoney.com/debt-snowball/

* www.guidetogreatertampabay.com/2022/06/28/traveling-th...-one-step-at-a-time/

* www.incomebuddies.com/debt-snowball/

* www.houseofdebt.org/debt-snowball-method/

* www.equifax.com/personal/education/debt-management...ent-vs-saving-money/

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[SamReomo]

The debt snowball method is one of the most recommended strategies to get out of debt. How does it work?

For those who have gotten out of debt more quickly, did you use the debt snowball method or another personal debt payment strategy that worked for you over the years?

I must say that the debt snowball method is one of the best strategies to be debt free because it has a very good concept in repaying the debts. The main focus goes on paying the smallest debts and slowly moving towards the one with very high value. When you start following the strategy and successfully paid your smallest debt you will get positive emotions about yourself. You will now focus on paying the rest of the debt one by one over time, and you won't delay the payment of any debt on your shoulders.

I'm really impressed by the strategy as it is truly effective. I have used it in past and I must say that it works like a charm. It will somehow force you to pay the debts on time even if you do extra job hours and that the real magic of the method. However, the debt I had wasn't a very huge one, and I'm not sure that if the method would work for the ones with very high debts. I even wonder that how would this thing works for those who have debts of millions on their shoulders and aren't able to pay the debts even in 4 years.

[avikz]

I won't go on discussing the snowball method but I want to share a personal strategy which I use to pay off my mortgage faster. It's called progressive debt repayment or step up.

I just increase monthly payment by 10% -15% every year and that's it. I don't make lumpsum payments or any interest renegotiation unless absolutely needed. I had initially taken this loan for 25 years and now I can see the tenure remaining is less than 17 years. This method really helped me personally.

[bussybuddy]

I acknowledge the fact that applying the strategy from this method works, the snowball method and other individual debt settlement strategies can work for each user, depending on the financial situation user specific. Users can seek advice from financial experts to choose the most suitable method for them.
A strategy that focuses on paying off small debts first, then gradually increasing payments on larger debts in a "gradu-to-fast" approach. Specifically, the focus is on first paying the monthly interest on all debts, then paying off the small debts before moving on to the larger ones. This method works by creating momentum for long-term repayment and relieving some of the debtor's financial burden. This helps the debtor focus on paying off the debt and developing long-term financial plans.

[Jet Cash]

In my opinion, the only sensible debt reduction method is to make sure you don't incur any penalties first, and then pay off the debts with the highest interest payments next. Any other strategy just means that you are adding to the debt with higher interest payments. The real answer is to avoid debt in the first place. Go out and mow someone's lawn or collect scrap metal, or do some other job to get the extra cash. It also helps to reduce your outgoings. There is an old adage " A penny saved is a penny earnt". It shows how old that is by the reference to pennies. Don't buy unhealthy McDonalds rubbish, but cook some real food, it's cheaper and better for you. Cut out cigarettes and vaping stupidity, and reduce your alcohol consumtion as well - you'd be shocked if you worked out how much you spent on those if you are a heavy user.

[Unbunplease]

In my opinion, the only sensible debt reduction method is to make sure you don't incur any penalties first, and then pay off the debts with the highest interest payments next. Any other strategy just means that you are adding to the debt with higher interest payments. The real answer is to avoid debt in the first place. Go out and mow someone's lawn or collect scrap metal, or do some other job to get the extra cash. It also helps to reduce your outgoings. There is an old adage " A penny saved is a penny earnt". It shows how old that is by the reference to pennies. Don't buy unhealthy McDonalds rubbish, but cook some real food, it's cheaper and better for you. Cut out cigarettes and vaping stupidity, and reduce your alcohol consumtion as well - you'd be shocked if you worked out how much you spent on those if you are a heavy user.

To understand what you can save money on, you should first make yourself write down all your expenses. It is also necessary to separately identify fixed costs - rent, utilities and other similar types of expenses. Then you will clearly know what costs can be reduced. As for ready-made meals - nowadays they sell ready-made frozen foods. All you have to do is heat it up. And it doesn't cost much at all.

[Yamane_Keto]

Falling into debt is a trap, and no matter how hard you try to overcome it, the harder it is to get used to falling into debt. The easier it is for you to take a loan from the bank or from your friends, the bigger the snowball becomes, so no matter how much you pay off your debts, you will find yourself in debt again. Debt is usually yours, meaning it is your last resort.

After you leave this habit and accustom yourself to paying it, you will find that the debts that grow or are associated with specific deadlines are the last debts to be repaid, because you will force yourself to work to pay them, and therefore you may stop eating in restaurants, going to clubs and wasting time in order to pay them off, and then be sure to finish them. Unimportant debts first, down to important debts, and so on.

This method may not work for everyone, but it works for some, and you have the right to choose the appropriate method for you according to your circumstances, but do not return to take a debt again.

[Zlantann]

In my opinion, the only sensible debt reduction method is to make sure you don't incur any penalties first, and then pay off the debts with the highest interest payments next. Any other strategy just means that you are adding to the debt with higher interest payments. The real answer is to avoid debt in the first place. Go out and mow someone's lawn or collect scrap metal, or do some other job to get the extra cash. It also helps to reduce your outgoings. There is an old adage " A penny saved is a penny earnt". It shows how old that is by the reference to pennies. Don't buy unhealthy McDonalds rubbish, but cook some real food, it's cheaper and better for you. Cut out cigarettes and vaping stupidity, and reduce your alcohol consumtion as well - you'd be shocked if you worked out how much you spent on those if you are a heavy user.

Many people are in debt because they buy what they don't need. Some people have the habit of buying the advanced model of their phones, cars, and other accessories. This habit has been built over the years and it has become a tradition to them. So they spend on these items without considering their debt profile. Meanwhile, the old models or editions are stronger and durable than the new ones. I will become indebted if the loan or credit is a necessity but I will never take a loan for pleasure or to satisfy a want.

The best strategy to be free from debt is to avoid unnecessary expenses. Cut some major expenses such as house rent by owning your house. Buy quality products that can last for a long time. Learn an additional skill that can increase your income. And don't take a loan to service or pay for another loan.

[Upgrade00]

Many people are in debt because they buy what they don't need. Some people have the habit of buying the advanced model of their phones, cars, and other accessories. This habit has been built over the years and it has become a tradition to them. So they spend on these items without considering their debt profile.

Many are in unavoidable debt cause the society (banks) steers them towards that path. We have mortgage debts and student loans which accounts for majority of debts that people own. They are not caused by bad spending habits or addiction to any substances.

Being in control of you financial situation and having a budget to kontior your spendings would help a lot to avoid getting into a financial crisis, but the best way is to find extra ways to earn an income and invest in assets gradually to secure funds for the future.

[Rruchi man]

For those who have gotten out of debt more quickly, did you use the debt snowball method or another personal debt payment strategy that worked for you over the years?

Strategy without commitment is nothing and will not work. I have seen situations where strategies to clear debts has been laid out to people in debt but because they lack commitment to clear the debt, they never meet up. Debtors need to be committed to settling a debt above all things if they willeet up with clearing a debt. Some debtors also start commited to clear a debt but loose commitment along the way because of distractions. A debtor who intends to put to work any strategy to clear their debt need to understand the need to plan to remain committed.

[tjtonmoy]

Firstly, I am not into debt that much, but when it becomes necessary I consider following a strategy of my own. I don't know if this exists already or have a name, but this is what I came up with.
I only borrow when it's an extreme scenario where borrowing is the last option. I like to set the deadline 2 times more than my payment date. That way, even if one gets missed, I try to make sure the next pay date will bring the amount for sure. Also, I take the minimum amount that is needed for the job to be done. So less pressure there.
What you said in OP about snowball method, it was unknown to me till this day. It's a really good method that you have taught me today. Thanks to you for sharing such informative post. This is how human mind works and this method shows exactly that. Now I have 2 methods in my arsenal to use. This will be very helpful for the upcoming future.

[panganib999]

The debt snowball method is one of the most recommended strategies to get out of debt. How does it work?

You list your debts from smallest to largest and pay the minimum amount on everything except the smallest one. You prioritize paying off the smallest debt aggressively.

- consider selling off all the items you don't need.
- Consider working more jobs to increase your source income.
- Consider temporarily halting all investment, after which pour all your energy into paying off to the smallest debts.

By paying off the smallest debts first, the snowball effect kicks in and you move on to the next debt on the list until you pay off all of them. It is estimated that a person who follows this method religiously can become debt-free within 18 - 24 months.

However, the debt snowball method may not be effective if you have debts with specific payment dates that, if missed, could result in higher interest rates or a negative impact on your credit score. Nobody wants any of these.

Recently, I had some debts to pay and prioritized them based on urgency, regardless of their size. I had to pay them by or before the deadline. I didn't mind whether they were big debts or small debts. What mattered was meeting up with the deadline. This approach worked for me, although I'm not sure if it falls under the debt snowball method.

For those who have gotten out of debt more quickly, did you use the debt snowball method or another personal debt payment strategy that worked for you over the years?

* www.cashry.com/blog/the-debt-snowball-method-to-help-reduce-your-debt/

* www.citi.com/credit-cards/debt-management/debt-snowball

* www.bankrate.com/personal-finance/debt/debt-snowball/

* www.capitalone.com/learn-grow/money-management/debt-snowball-method/

* www.mamaandmoney.com/debt-snowball/

* www.guidetogreatertampabay.com/2022/06/28/traveling-th...-one-step-at-a-time/

* www.incomebuddies.com/debt-snowball/

* www.houseofdebt.org/debt-snowball-method/

* www.equifax.com/personal/education/debt-management...ent-vs-saving-money/

It's a good strat that I may have used unknowingly in the past, but for stuff that are needed to be paid on specific due dates, it won't work well as you said. If I were to advise people (with debts like that) on what what strat is best for them, I'd say it's the abstinence method.

Basically, you stop any form of unnecessary expenses, tally up how much you've been spending over those stuff, and be hit with the realization that you spend this much over stuff you don't need. Once that sets in, stop all of those at once, and immediately pay off your debt, with those that are set on due dates being the highest priority so as to not incur interest charges.

If that's not gonna cut it for you, I suggest you take up another debt, build up a surefire business (online selling of gadgets and tech services for mobile phones, or essentials like food and baby goods) and use the profits to pay off all your debts. This is a little riskier than what I have listed prior but this will not only stop you from taking debt if the business took off, but will also enlighten you in the world of entrepreneurship and would set yourself for financial freedom later down the line.

[adaseb]

I never heard of this method but I think the best method is not the smallest balance but the one which has the highest interest.

If you got one debt at $1000 with 10% interest and another $100 with 5% interest then it makes more sense to pay off the $1000 debt because even though it’s higher than the smaller the interest will be double of the smaller debt.

There is also consolidation of debt which works for many people. Usually there are agencies in the area that can help you with that if you are struggling.

[Faisal2202]

- consider selling off all the items you don't need.
- Consider working more jobs to increase your source income.
- Consider temporarily halting all investment, after which pour all your energy into paying off to the smallest debts.
..
For those who have gotten out of debt more quickly, did you use the debt snowball method or another personal debt payment strategy that worked for you over the years?

Well, this is what i have been doing all the time but did not know i was following the snowball method (unintentionally) and i wonder why it is named as snowballs i was calling my method divide and conquer. i love this method (Divide and conquer), i have been implementing this method in all of my problems for the last 6 years when i came to know about it in my school in computer class, i said this method solved most of the problems in real world too, for example, i do not know how to buy something or invest money or read book in lesser time, or solve questions, etc. all i do is remember this technique of dividing big issues into smaller one and then solving each one by one. It really works for me.

As i do not have debt that has a deadline because most of the debt is taken from near ones (like relatives and friends) and they have a soft return policy so i can return them whenever i have money but i have to be true to them and not tell them to lie to wait for more.

I didn't mind whether they were big debts or small debts. What mattered was meeting up with the deadline. This approach worked for me, although I'm not sure if it falls under the debt snowball method.

I do not think that you are following the snowball method anymore because according to your own statements about snowball, you are following the path which situations are making for you.

[348Judah]

Though am not the kind that likes being in debt because whenever i have any income of financial flow like this it will all go into the settlement of debts, this is a bad moral for me personally and I don't give a take on taking or going into debt, one can alwa have that required patient needed to before engaging in doing some things, I will also like to drop thos as an advise for those already in debt to go and source out money for themselves by doing some menial jobs, services or task that can fetch them interest to pay their creditors, this is the only required and best way i can give and not to encourage selling of asset or properties or even engaging in lending more from other sources to pay the due ones.

[KiaKia]

How did you get in debt in the first place that you are now looking for way to get out of debt? I really have to thank my parents for telling us how bad debts are when we are little, because I hate debt to much that I don't plan anything with debt, I know some people have use debt to make changes but I am not build in such a way, debt is very risky and can be life-threatening too.

That's why most people committed suicide in my state, they use debt to build a family and their life and the debt keeps growing, these are set of people that looked like they are living a dream life that others wanted, but it's all on loans and debts.

If I don't have the money I am not doing it, this is my rules in life, if I can't afford anything I am moving on and away from that thing, either investing or living my life, I don't want any form of debt, I always use my hard-earned money for any courses in life.

[Kakmakr]

I think one of the best methods to reduce your debt, is to stop making new debt. I see a lot of companies that are offering loans to consolidate your debt and then paying a lower interest rate, but the people do this and then continue making more debt with the money that were made available through this method. 

You should be willing to go ALL IN to a debt reducing strategy when you start with something like this. Make huge sacrifices for a couple of months and then reap the reward. (No more wasting money on expensive takeouts and eating at restaurants and smoking and drinking) 

[Iadegbola34]

Let me share my personal experience. When I had debts to pay, I decided to prioritize them based on urgency, regardless of their size. Meeting the deadlines was the name of the game for me. It didn't matter if they were huge or tiny debts. I just wanted to make sure I stayed on track. And guess what? This approach actually worked out pretty well for me. But hey, I'm not sure if it falls under the official debt snowball method or not.

[Gyfts]

IMO the "snowball method" is complete junk. It's the reason why people are stuck in perpetual debt cycles.

Paying off high/compounding interest first is the only answer if avoidance of debt is unavailable. Interest rates/compounding interest are the reason people slip into debt. The payments become insurmountable. Factor interest rates with the total debt due, obviously. The interest rates of a 100k USD loan, while they may be lower, take priority over that of a 100 USD loan.

Recently, I had some debts to pay and prioritized them based on urgency, regardless of their size. I had to pay them by or before the deadline. I didn't mind whether they were big debts or small debts. What mattered was meeting up with the deadline. This approach worked for me, although I'm not sure if it falls under the debt snowball method.

How do you define urgency? If you risk default on a particular debt which has a lesser interest rate than on another debt with a greater interest rate, would you take the debt of greater interest rate to be more urgent?

[Don Pedro Dinero]

I have never had a pile of various debts. When I had a couple I used kind of the snowball but the interest rate was the same or similar so I didn't have a dilemma.

The snowball method is often used because it gives results due to the psychological effect. Mathematically, if you have a large debt at 4% interest and a small one at 3% it makes more sense to pay the larger one. But it makes better psychological effect to pay the smaller one and see that you get a result sooner.

I, except for very rational people and maths nerds, who normally wouldn't get into multiple debts, recommend snowballing.