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

[carlfebz2]

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?

I agree about snowball type of method on which you would be able to sweep or clear up those debts one by one on which you would really be eager on the time that you do see that you are progressing or clearing

up those things but its really that hard on ignoring those investment installments or business related on which you cant really be able to halt them on which this would slowed up the pace but somewhat still
considerable as long you do see that progress.This is the most important thing on which you should really be that having the management if you do have credit cards.In my own way or method on clearing up
specially on my credit cards is that i do make out some installment its true that it doesnt matter whether this is big or small as long you do see that you could be able to clear up those
debts in due time but of course this would might take long.

[tygeade]

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.

Having two paying dates were seem less pressure than only one but the only downside is that our loans, we will take time to be payed and then we think we are paying more than usual. This is hassle if we also have other expenses outside. If the loan has a single paying time, sometimes the person who took the loan can still be delayed in terms of paying it so they are still allowed to pay the loan on a another date but the only difference is that they are now required to pay some extra fees as an act of penalty.

It's my first time as well to hear about the snowball method I thought it's about taking another loan to pay our previous loans lol because snowball seems like an aggressive word. I mostly heard it though in MOBA games.

[naira]

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.

Prioritize paying debts based on the grace period because it's useless if you prioritize smaller debts but large debts are getting closer to the limit. In my opinion, everything has to be adjusted according to the order, if the time span is the same, when you face a fairly close time, what needs to be considered is that the debt is not in quantity or quantitative.

I agree with such methods, but they are not always effective for various types of debt. We will be demanded for one full payment so that is what needs to take precedence over methods.

[tjtonmoy]

Having two paying dates were seem less pressure than only one but the only downside is that our loans, we will take time to be payed and then we think we are paying more than usual. This is hassle if we also have other expenses outside. If the loan has a single paying time, sometimes the person who took the loan can still be delayed in terms of paying it so they are still allowed to pay the loan on a another date but the only difference is that they are now required to pay some extra fees as an act of penalty.

Maybe I was unable to explain that clearly. Let me clear that for you. The "2 times" that I mentioned is not 2 paying dates. Let's just say that I am going to get paid after 15 days. I will get the next payment after another 15 days. So I will set the repay date after 30 days. If I get the payment in the first 15 days time, I will save what is necessary to pay the debt. And I will wait for the next payment and make it as my backup plan. That way, when the deadline is near, I will have double the amount than what is necessary. I will repay the debt, and also I will have a savings that I can use as I please.
Or in worst case scenarios, if the first payment date is missed, I can use the next payment to repay.
I don't know if this is something good or bad, but it has helped me a lot. And even if I have to pay a little bit extra, I won't feel the pressure that will ruin my day. I will stay more focused that way, and the debt will be paid in time too. This way it is possible to avoid the penalty fees too. I hope I was able to explain it more clearly this time.

[Findingnemo]

The other method is debt Avalanche which is paying of your highest debt first and the next big till your lowest debt which is not that effective compared to snowball method but it may works in some cases. On a personal scale I avoid taking loans as much as possible because it can become extra pressure which makes me feel anxious about paying the dues on time every month so I will try to foreclosure the loan instead of accumulating assets if possible.

[milewilda]

The other method is debt Avalanche which is paying of your highest debt first and the next big till your lowest debt which is not that effective compared to snowball method but it may works in some cases. On a personal scale I avoid taking loans as much as possible because it can become extra pressure which makes me feel anxious about paying the dues on time every month so I will try to foreclosure the loan instead of accumulating assets if possible.

Actually which one of those two methods would really be working and this would be entirely be depending on your dedication on clearing up your debts which its actually hard if you dont persevere or really that being serious on clearing it up. I would rather be having that snowball from least to greatest when it comes on clearing up the debt which focusing on small first because on the time that you do clear up those small loans or debts then you would really be having that kind of feeling which it would be boosting up on proceeding because you do see some progress or you've been seeing that its been cleared up 1 by 1. Although this cant really be that so simple which we know that we do have other spendings or expenses along the way. Just like on what others been saying that it would really be that a challenge or something tough on making some division of your salary specially if you do have only that one income source on where allocating something for debt is really a huge cut and something that shouldn't really be there but well we do have situations in life which we do need to borrow up something and this is why it leaves us no choice but to engage with it.It isnt really wrong as long you do know on how to repay them on time.

[alastantiger]

The snowball methods works perfect for me. I have no problem or pressure whatsoever keeping or following it. I pay off my  lowest debts which gives me the morale to do what it take to pay off the remaining ones. I followed it and I cleared of credit card debts and other family debts too. In addition, I got a job and like a pauper for almost 3 months, while doing the best I could to get by. I found bitcoin and my life change. It helped me accelerate paying off my debts faster.  I don't want to be in debts any more. A debts free person is a happy person.

[Uruhara]

The Snowball method seems to be what many people also do in an effort to free themselves from debt and pay it off gradually until it's finished.

But the situation is different for those who have this type of debt that has interest that increases if it is not repaid immediately. then it is important to prioritize this one. after this one is done then we can pay off other debts that are not time bound. while those that are time bound are very important to take precedence because if we are not on time even our psychology can be disrupted and have an impact on decreasing our performance in making money. what is more important is that we must continue to increase our sources of income from time to time.

[passwordnow]

The trick is very simple that is I am applying to myself. If I cannot afford it, there is no other option but to buy those things that I want in cash. Not gonna get any borrowed money or even gonna take a loan. That's the first simple rule that's working for me and I am sure that others are also using this as a rule to themselves, simply don't take it if you cannot afford it. In short, do not borrow if you're planning to go for it, and for those that have debt and having a hard time dealing with it. First, don't add another debt and as much as you can, have more cash flow.

[xSkylarx]

The trick is very simple that is I am applying to myself. If I cannot afford it, there is no other option but to buy those things that I want in cash. Not gonna get any borrowed money or even gonna take a loan. That's the first simple rule that's working for me and I am sure that others are also using this as a rule to themselves, simply don't take it if you cannot afford it. In short, do not borrow if you're planning to go for it, and for those that have debt and having a hard time dealing with it. First, don't add another debt and as much as you can, have more cash flow.

This is really the best thing to do, but again, for others, it is not possible as they need to take a loan twice for something. If you are having a family and the income is not that huge and you need to pay something like tuition or needed stuff in your home, you are forced to take a loan. Also, as others said, if you won't take a loan, you can't purchase those things, which is sometimes true because I took a loan just to have my motorcycle as we used it for traveling, and we know right now that the fare is very expensive, and I also can't purchase it in cash. But the thing is that I can pay it on a monthly, so there are no problem with me, but I do need to pay it on time, and there are no other debts so that I can still pay it.

[Husires]

The problem of debt is the delay in repaying the first debt that will make procrastination in repaying the rest of the debts a normal matter. Therefore, if you are advising someone, I will tell him that he does not fall into the debt unless he is forced, and then he tries to pay it first. Otherwise, when you have several accumulated debts, you have put yourself in a hole from which you will not get out. almost.

Payment strategies are an advanced step after knowing the importance of payment. Personally, I prefer that you pay taxes and government procedures first, and the cumulative debts second, and then go to the rest of the debts. The snowball method may not work for everyone.

[Findingnemo]

The other method is debt Avalanche which is paying of your highest debt first and the next big till your lowest debt which is not that effective compared to snowball method but it may works in some cases. On a personal scale I avoid taking loans as much as possible because it can become extra pressure which makes me feel anxious about paying the dues on time every month so I will try to foreclosure the loan instead of accumulating assets if possible.

Actually which one of those two methods would really be working and this would be entirely be depending on your dedication on clearing up your debts which its actually hard if you dont persevere or really that being serious on clearing it up. I would rather be having that snowball from least to greatest when it comes on clearing up the debt which focusing on small first because on the time that you do clear up those small loans or debts then you would really be having that kind of feeling which it would be boosting up on proceeding because you do see some progress or you've been seeing that its been cleared up 1 by 1. Although this cant really be that so simple which we know that we do have other spendings or expenses along the way. Just like on what others been saying that it would really be that a challenge or something tough on making some division of your salary specially if you do have only that one income source on where allocating something for debt is really a huge cut and something that shouldn't really be there but well we do have situations in life which we do need to borrow up something and this is why it leaves us no choice but to engage with it.It isnt really wrong as long you do know on how to repay them on time.

The snowball method is the one adviced to follow by most of the economic experts because when someone caught into a debt means they are not good at managing the funds so going smaller to bigger would be ideal on the other side clearing the biggest first can save a huge money from the interest that is why it depends on what kind of debt we are having to face. Just as I said avoiding loans as much as possible is good thing for middle class because it's a trap from banks whereas if you're a millionaire you can enjoy the benefits with the debt.

[BitcoinTurk]

I have started to pay my debts in installments due to some financial problems I have experienced recently. When I make a profit from any transaction I switch it to cash for my debt regardless of big or small and when I get my salary I set aside money for my debt as like I was saving. Especially in the last two months I have completed almost 40% of my entire debt balance due to the use of this method and according to the plans I have made I will finish the remaining amount in the remaining 2 months.
I will definitely recommend that people with high debts use this method patiently because unfortunately it is not easy to arrange and pay the entire amount in one way or another. In addition, you can enter a vicious circle after making a payment at once.

[passwordnow]

The trick is very simple that is I am applying to myself. If I cannot afford it, there is no other option but to buy those things that I want in cash. Not gonna get any borrowed money or even gonna take a loan. That's the first simple rule that's working for me and I am sure that others are also using this as a rule to themselves, simply don't take it if you cannot afford it. In short, do not borrow if you're planning to go for it, and for those that have debt and having a hard time dealing with it. First, don't add another debt and as much as you can, have more cash flow.

This is really the best thing to do, but again, for others, it is not possible as they need to take a loan twice for something. If you are having a family and the income is not that huge and you need to pay something like tuition or needed stuff in your home, you are forced to take a loan. Also, as others said, if you won't take a loan, you can't purchase those things, which is sometimes true because I took a loan just to have my motorcycle as we used it for traveling, and we know right now that the fare is very expensive, and I also can't purchase it in cash. But the thing is that I can pay it on a monthly, so there are no problem with me, but I do need to pay it on time, and there are no other debts so that I can still pay it.

Yes, it's not applicable to all but I hope that someone will realize it. It's quite hard to understand if we want something to have as ours but if we really can't afford it, much better not to resort to it through taking a loan. That's gonna put you into a deeper hole of loaning because you'll discover that you can have things even if you lack money. That's why that thinking won't work on me and I'll just accept the fact that if I can't buy it through cash, then I'll have to forget it for now and save until I am able.

[el kaka22]

Just small grind basically. Do not rush to finish it, try to make it as long as possible, it is better to pay 100 dollars for 120 months than 1000 dollars for 12 months, that is how you should be approaching it. Sure there could be interest changes between the two that's true but I would say even if you talk about paying 5 dollars more, which is a lot of interest change on 120 months, it would still be better and I would still do that.

Because by the time that 120 month one is over, 100 dollars will worth a lot less, without question, the devaluation of dollar is here and it is not going away. Just do small per month debts and that way you are going to be doing a lot better, I do that, I have a ton of debt, a million things I bought, all small by small and for long term.

[wxa7115]

that being said nothing beats never getting in debt to begin with, as with the exception of big purchases like a house or a medical emergency there is not really any justification to accumulate so much debt.

Best way to deal with debts is to avoid debts. I know that debt can be sometimes unavoidable, but it's probably planning you can get things done. If you are getting in that it should be for a very reasonable for purpose and you should already have a plan on how to pay back the debt without it becoming a burden for you. If you become used to getting in debts very easily, over unnecessary things, it can be a consuming habit that will take a lot of discipline to overcome. With a habit of getting in debt, you will be exhausting any money you expect even become it gets to you.

And the saddest part of all is that consumers get in debt in order to purchase what they want, but what they do not realize is that by buying most of their stuff on credit they overpay for such products several times over.

If instead they decided to save their money for every purchase they wanted to make and they bought those products with cash, then they will get more products with the same amount of money by just knowing how to use their money properly.

[justdimin]

Prioritize paying debts based on the grace period because it's useless if you prioritize smaller debts but large debts are getting closer to the limit. In my opinion, everything has to be adjusted according to the order, if the time span is the same, when you face a fairly close time, what needs to be considered is that the debt is not in quantity or quantitative.

I agree with such methods, but they are not always effective for various types of debt. We will be demanded for one full payment so that is what needs to take precedence over methods.

I think the best method to pay the debt is always figuring out the lowest amount you could pay, if you can pay a lot less towards your credit card debt, then you pay that, not the whole thing, if you can postpone your loan 3 months then you postpone it, always pay as little as possible and never try to pay all of your debt.

Because inflation is reality and you would be able to make more money in the future, not too many people make less money next year compared to this year, almost everyone will make more, that's the traditional trajectory for working, you make more every year. I do, I make more every year due to inflation in my country, and I have A LOT of debt compared to last year, I have more debt than my entire salary compared to last year, but this year? My salary is a lot more due to rates and inflations so my debt is only half of my income not all of it.

[Poker Player]

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 haven't had consumer debt for quite some time but when I did, I used the snowball method. I also didn't have lots of different debts and of huge amounts so with a little effort I was able to get rid of it quickly, but I think the method is effective mainly because of the positive psychological effect when getting rid of small debts, which takes precedence over the math. The boost in your confidence that comes from seeing that you have made progress by removing a debt reinforces you positively to continue with the plan even pushing it harder.

[Republikcoin.com]

Avoiding debt in the first place is a wise approach, and focusing on paying off high-interest debt can help minimize interest payments over time. Being mindful of your spending habits, such as avoiding unhealthy fast food and unnecessary purchases, can contribute to saving money and maintaining a healthier lifestyle. While it's important to consider these practical steps to reduce debt, it's also important to recognize that everyone's financial circumstances and challenges are unique. Sometimes unexpected situations or emergencies can lead to debt, and individuals may require different approaches to deal with their particular situations.

It is not only wise for someone who is able to avoid debt in his life, but also makes himself seen as stronger by others by not being able to reach our abilities. Apart from that, I also agree with the points you said where after a person is able to avoid debt, also avoid fast food and avoid buying unnecessary things in his life, I think that kind of person will always win in his life because he can save money from the smallest and simplest things to the biggest things which are always the main consideration.

On the other hand, people who are able to refrain from getting into debt and also restrain their lust from buying more unnecessary things are people who are usually quite disciplined in their lives. Because he will always value his time and money only for more important things without wasting it on things he deems less important in his life and I think this kind of person is a person who is wise enough to think even though only a handful of people do like this.

[South Park]

Avoiding debt in the first place is a wise approach, and focusing on paying off high-interest debt can help minimize interest payments over time. Being mindful of your spending habits, such as avoiding unhealthy fast food and unnecessary purchases, can contribute to saving money and maintaining a healthier lifestyle. While it's important to consider these practical steps to reduce debt, it's also important to recognize that everyone's financial circumstances and challenges are unique. Sometimes unexpected situations or emergencies can lead to debt, and individuals may require different approaches to deal with their particular situations.

It is not only wise for someone who is able to avoid debt in his life, but also makes himself seen as stronger by others by not being able to reach our abilities. Apart from that, I also agree with the points you said where after a person is able to avoid debt, also avoid fast food and avoid buying unnecessary things in his life, I think that kind of person will always win in his life because he can save money from the smallest and simplest things to the biggest things which are always the main consideration.

On the other hand, people who are able to refrain from getting into debt and also restrain their lust from buying more unnecessary things are people who are usually quite disciplined in their lives. Because he will always value his time and money only for more important things without wasting it on things he deems less important in his life and I think this kind of person is a person who is wise enough to think even though only a handful of people do like this.

Those are qualities which can be taught to children by their parents or the school system put in place by the governments, but neither of them take the time to do so, in the case of the parents they may not know how to do this as they do not do this on their lives, but the school system refuses to do so as governments benefit from having people which spend their hard earned money on useless stuff, as in this way companies do not really need to care about creating a quality product, as they know that whatever they make can be sold if enough marketing is employed.