Topic: What is your personal debt reduction method aside the debt snowball method? (Read 682 times)

The main thing or factor on which you would really be needing to check would really be solely on your source of income because it isnt really that much of a problem if you are earning sufficient, but what if not?

Whether the interest rate would be small or big then you would really be struggling on repaying or clearing up those debts on a certain period of time or would really be just simply that keep on continuing on paying up
those monthly amount due which it would really be just that an interest needs to be paid up. How long you would be keeping on doing this? For sure it would really be taking some time if you wont really be finding
other solution to the problem and this is where these banks and lending firms would really making out or sucking money into people.

Just be responsible and be mindful about your obligations on which it might really be that struggling on paying up but as much as you could then trying out to clear those things should really be your main priority.

It also depends on the interest rate you need to pay for such loan, for example the interests you need to pay for a mortgage are very low and as such you can afford to take the loan and pay the house in 10 to 20 years, however the interests you need to pay when using a credit card are incredibly high and if you allow your debt to go out of hand then it could take you a great deal of time and money to pay your debts, which at the time you got such debt it was relatively small.

Since we have different jobs, our incomes are probably not the same. The capability of each person to take a loan should be different as well. But I think we must avoid to take a loan that we are difficult to repay the loans. If we earn $100k every year, we mustn't take a loan $220k, how we repay the money? Just take a loan for a very urgent need, don't take a loan excessively. We must think carefully how to repay the loan money before we take the loan. It is a careless way to borrow money without thinking much about the repay.

I just heard of the snowball strategy for accounts payable, but I don't know whether I've ever done it or not because I don't understand the meaning of the snowball method.
I was once in debt with a fairly large amount, but I prioritized paying large amounts first and then smaller ones, because if the due date for a large amount is in arrears, the calculation will go wrong for settlement. for payments in small amounts I minimize my expenses

The best method is definitely to try to avoid debt at all or minimize it. Living beyond your means will bring you into trouble. In case you're already balls deep in debt, this method could potentially be a lifesaver. 

Of course, everyone has a different level of responsibility. and we must avoid people who have no sense of responsibility. because people like that will only make the relationship more complicated. And if you have to be forced to give a loan, I think you have to be with money that you are really ready to lose.

The snowball method seems to be the most effective. because gradually everything can be resolved. but of course this method can also be used only when we have enough income.

People does have different mindset when it comes to this on which it is really not that the same on which there are people who are really that irresponsible when it comes into their debts or loans on which

this could really destroy up family or relative relations on which it wouldn't really be that happen because money could break up everything.If you are that minding about such thing then you would really be avoiding on making up conflicts and this is why you would really be paying up those loans in due time because you dont like for those kind of situations you might be ending up. Some are mindful and responsible but there are some people who are really taking up some advantage just because you are a family or close friend or similar to that.

In solving out your debts then snowball method would really be the best, go for small ones and if you do see that you have gradually been  eliminating those loans you do have then
you would really be  that persevere on finishing it all the way.

The best thing to avoid debt is to accept whatever we produce and never see other people, most people want to be like other people while our ability or income is not like other people, with a lot of grateful and enjoying everything we have tried so we don't need to be in debt . And if we are in debt then the best way is to immediately pay off and do not repeat the mistakes again.

Considering we all have different amounts of income and different amounts of debt, its not going to be that easy to find that is valid for all of us at the same time. I know that it looks like its possible but its not. If you make 100k a year and have 220k debt, its going to be wildly different from the person who has 10k a year income with 22k debt. Those are very different things not just because the difference in amount, because someone with 1 million a year income with 2.2 million debt could still do exactly what the 100k income one did, but the 10k income one doesn't have excess amount to spare, the other ones does. So in the end its all different from each other without a doubt, can't be considered on the same light.

Right. But with all the lessons we get from the experience of giving loans. So it was from there that I became aware that I personally could not even borrow a loan. when I get a loan of a friend, I will prioritize it and try to repay it according to the promised time. so that my friends and I can continue to build trust and not destroy our relationship. so is the family.

Well, it's true that when we intend to help others, we really try to lighten the burden that he has without expecting profit. Because we will be very happy when someone helps us selflessly.

I agree that giving the loan to our family members or friends makes them have low motivation to pay off on time. I've experienced it, one of my family members take a loan from me and never pay off the loan for years. It is true that the situation makes me lose my trust in him, and I become more careful to lend money to other family members or friends.

Sure, since it is for family members or friends, we shouldn't take an interest. Even if it is for other people, I try to lend them with no interest. I don't want to be like banks, the main purpose is to help other people. I always believe that helping people shouldn't expect interest since it is not the proper way to earn money from people with financial difficulties.

The method is indeed quite good in this case because it is also like having a condition where we have to start from the smallest to the largest but indeed in other conditions this also requires high consistency if you really want to do it quickly and be free from debt on the other hand it seems that this is not too suitable for the term but of course this can also still be for others while paying off the term in each month.

I think this will be very beneficial if you have the intention and are strong and consistent in making payments. The problem is that sometimes things like this always have gaps in terms of finances etc. because sometimes good plans like this are always hampered in some conditions.
On the other hand, this method is indeed very good, it's just a matter of seeing awareness because most people who are in debt always take the extreme way by borrowing from others to pay debts and they are trapped in this and their debts are getting bigger and bigger.

I try to minimize the weight of my expenditure so i don't fall into a pile of debt that will take an eternity to pay off. I usually get really distress whenever i incur a debt but the good thing is - i do have a day job which helps me in that aspect.
I have once collected a small loan from the bank to solve a pressing need and i was able to quickly pay back from the monthly deduction on my salary. I try to avoid debt as much as possible.  

One thing those people do not understand is that such an attitude closes them many doors, many years ago I had a friend like that, they asked for a small loan to their friends and family members and they never paid back, eventually people realized what was going on and they stopped lending him any money, and when he really needed it he could not get a single person to give him a loan despite the difficult situation he was in, if instead he had paid back his loans as he should then people would have been more than willing to lend him some money on his time of need.

You shouldnt really make yourself having that kind of lacks of motivation or the seriousness on wiping your debt because if you do then you wouldnt really be bothered on paying up something.

You would really be finding that interest keeps on piling up and time comes that you would barely be able to pay it up until everything would be having interest. This is why its really that important
that you should really be responsible on repaying on what you do owe because if not then you are gradually putting up  yourself into a deep debt on which cause on wrecking up your
financial status which we should really be avoiding on the first place.

I do prefer on having that snowball effect on clearing up loans on which on which it would really be that ideal on starting up some on small loans until into the big ones.
On the time that you would be seeing that its been cleared up then you would really that get motivated.

Lacking the motivation to pay our debt is a sign of being irresponsible. No matter how big or small our debt is, once someone lends us funds when we need it is already something that we should be grateful for. It means that they trust us that we could pay their money on our promised time so no matter what our situation is, we should always be motivated to pay them back because if we ruin their trust, we'll never have anyone to run to in the future in case we need their help again.
Lacking motivation and courage to pay our debt shouldn't be an excuse. We should be as well determined as we are when we're borrowing funds from lenders. After repaying them, as much as possible, we should try our best to avoid borrowing and try to manage our finances wisely so we'll never experience a financial shortage because if we'll keep on borrowing, the cycle of our struggles with just continue.

Never think about making a loan from anywhere, and anyone. However, when you have continued to do so and are already entangled in the viciousness of debt, then start making a list and which ones must be paid off first. Never be afraid, I mean now that many people are afraid of being late paying debts and then they make other loans to cover their old debts, this is a mistake that should not be made. At such times, it is better to form our mentality if we are unable to pay beyond the specified due date.

Yes, some people might think they would be embarrassed because usually if they make a loan from a company they will constantly have field officers coming to their house and questioning the clarity of when our debt will be paid. But in my opinion, it's better to be ashamed, than to have to continue to feel life that is not calm all the time.

Getting loans from family or relatives and friends sometimes makes us a little complacent and less burdened. But this can make us lack motivation to pay off loans. and yes it can create enemies and create rifts in our relationship with relatives. And actually if there are families who want to lend us money without interest then that's a fortune. because of the current situation, it is sometimes difficult for even family or friends to trust each other in lending money. But I personally also give loans to friends and family quite often, but luckily my family and friends always pay on time according to the agreement. And avoiding interest is what we have to do because with interest-bearing loans it will only make it more difficult for us to pay off because we have to pay off the principal loan along with the interest.

One of the methods i will do to pay off my debts is to try to increase my income. I am grateful to the crypto market for this. People get into debt spiral as a result of their uncontrolled spending and they always try a bad method like paying off debt with debt. First of all make a list of your debts. Determine where and how much you owe, how much is your total debt and which one should you pay first. One of the simple ways to get out of the debt spiral is to change your habits. There is no end to our desires but instead of living in debt, we can spend a little while focusing on our basic needs, stopping or limiting our desires.

The most important issue here is that if you want to pay off your debts, you should increase your income. Many people do not think about making money in other ways while working anywhere. Actually we should adopt the idea of ​​how to generate more income. If your place of work allows you to do extra work or earn money from a variety of hobbies outside of working hours consider this. Research additional income methods within the framework of your knowledge and skills for this. How much time can you spare, what you can do plan and take your actions. No one will pay your debt for you and you are the one who will succeed.

Here in my country, we don't usually take a loan from a bank but borrowing from someone we know instead to avoid any interest. I believe the snowball method is the most effective one here rather than not paying at all in the certain date you promised to return all the money, or the worst case scenario that could happen is you won't pay the money you borrowed at all because you have no shame since it's either your friend or a relative, and that's how you make enemies.

It seems that people are starting to wake up and they are realizing how disadvantageous it is for them to have so many debts, the problem is that even if they make that realization they cannot escape those loans that easily, as in many cases we are talking about debts they wanted to pay decades from now.

So if you are one of the few that is debt-free then you need to take advantage of it, and this can be done by investing whatever spare money you have in assets that you know that will do well over the next years, and without a doubt bitcoin is one of the best assets someone can choose in order to do this.

Debt basically has to be paid off in any way, it shows how our attitude is in being responsible for the debt decisions we take. So far I have never owed large amounts of debt so I don't know what to explain about the repayment method, but there is one thing that needs to be considered every time we owe, where we must have a job before deciding to owe, so that when the monthly deposit is due we don't feel burdened with the debt.

Or we can apply a standard percentage that is much larger than the fees we have to pay each month. For example, if we have to pay $200 every month, try to pay around $300 to $400 every time we are due each month, so that the duration of the debt can be shortened to pay off. This method can be used if we have a permanent job and even though it is large this is a way that can be done to speed up our debt being paid off.

Indeed, sometimes people begin to realize the importance of avoiding loans and the importance of always having a reserve fund ready when financial conditions are not improving. So it is also important for us to learn from the experiences of others. so that we are not trapped in situations experienced by other people who find it not easy to pay off a loan. So that no matter what happens, we must always have savings and reserve funds to avoid all kinds of unexpected costs. and it's better to start now to save more and start learning to generate more income plow so that we can more easily set aside money to save and invest. and for those who already have debt, then start planning to pay it off from what we are most able to pay off. maybe you can start small or from the one with the closest maturity. although it is not easy for some people. but believe me there is always a way out if we want to work harder.

I also get this error sometimes. But there is another situation. If I delay the things I need, I get a raise because of inflation and I have to buy it very expensive later. In order not to experience this, others are added to my debts. Of course, the end of my debts is also delayed because of this.

Sometimes your old phone or computer has expired and you need to get a new one. When all of these coincide at the same time, this payment method you have made may fail. Sometimes all your plans in life don't work so I can't fully stick to this plan.

The best strategy to get out of debt is to avoid unnecessary spending. I know this, but I can buy things because what is unnecessary today may be necessary tomorrow. When I do this in a planned way, there is no problem.

You would only be able to realize up these things on the time that you would really be experiencing those hardship because you dont have any savings or side money which you could really make use on the time

where emergencies do happen. You would really be knowing its importance when you are already on the actual situation but before that then you had just simply ignored it out just because you are confident that you could really pay up the bills or something when the time comes but when you are on the actual situation then you would really be able to say that it wasnt really that enough.
This is the time that you would really be taking up some loans because you are short in cash.Its not really that bad on taking but as much as possible you should really be avoiding on having
those loans because paying up interest would really be such a huge burden.

Doesnt matter on which method you would be using on clearing up your debts and loans as long you could be able to minimize it or you do see progress then that what matter the most.

That's right and we must always prepare a reserve fund and emergency savings to anticipate if there is an urgent need. And all of that can be done if we have more income than expenses. Then the strategy for paying off debt can also be done by increasing the amount of our personal income. because without sufficient income it is difficult to save and it is not even easy to pay off debt. So the main focus is to have more income.

There is another problem - some banks offer to pay interest not immediately, but, for example, after 180 days. But if a person forgets to pay a certain amount, interest is charged at double the rate.

As for loans - it is good advice not to take out loans, but there is always a force majeure (for example, illness).

Difficult economic conditions like now make us have to be good at finding sources of income, many people rely on debt when they have sudden needs so that they have to pay interest, the best solution is when a lot of money then use it for business or investment so that when we have a sudden need we do not rely on debt .

Your approach reflects financial maturity and pragmatism. How about a dash of the 'Debt Avalanche' technique? It's the Snowball method's big cousin, charging at the highest interest beast first. This route can cut down your interest dues.

Moreover, financial literacy is the ace up your sleeve. Decoding terms like compound interest, credit score impacts, and budget fundamentals can arm you with money wisdom. When you blend this knowledge with your measures, it's a masterstroke for managing debts.

As much as possible I am avoiding having a debt 'coz that is where struggle begin in terms of financial aspect. But yes, there'll be times you would be pushed to do so. In paying debt, Snowball method would be a good way to settle but most of the time sense of urgency should be applied especially if you have multiple debt wherein sometimes, as mentioned, has interest, and that should be prioritized to have a progress. What we should avoid is paying a debt using another debt. There are times this is effective concerning urgency as well, but it will just eventually be a cycle and nothing will be totally resolved. So I'd say urgency with adjustment of your expenses, would be the best way to pay debts.

Pay the debt having interest first then those which are not, make sure to fill the gap even little by little. It would be hard to pay all of it simultaneously but atleast there'll be progress and it won't be a shame to where you have borrowed the money. Create adjustments with your expenses such as choosing to walk if the destination ain't too far. Choose to cook at home than to eat on restaurants. Create an alternative to buying a new one if possible.Or simply choose to struggle now to eventually be comfortable once debts are settled.

You are right. at least by reducing the number of people we owe, it can help us a little psychologically because no one will collect a lot of debts from us. it's just that I think we have to pay off the debt that costs us the most. For example, debt that has an ever-increasing amount of interest is indeed what we must prioritize. because this type of debt can complicate our economy and make it difficult for us to pay to others. but well it all depends on the situation and conditions. The point is to pay what we can afford to pay the most. starting small is also a pretty good step.

The snowball method is best to trim down the number of people whom we have debt with.  So it is best for peace of mind because of lesser number of people calling us to pay our debt.  So with snowball method, the aim is to minimize the stress due to huge number of people asking us to pay.  In terms of reducing the interest to be paid, avalanche method where we pay the biggest interest first to save us from paying larger amount of money for interest.

Both are a good way to reduce the debt but they have their own effectiveness which we can consider depending on our priority.

The easiest thing to do in this case is to take advantage of debt restructuring or to pay off all your debts by taking a loan from a bank with a lower rate. Of course, it all depends on the size of the loan, as there are restrictions on the loan if you already have a fairly large loan

The snowball method as you described it is actually pretty poor and if you have substantial debts it could leave you paying them off for longer than necessary. It all requires context however and a bit of common sense, but  mathematically speaking you should aim to pay down the highest rate of APR first. If you have reached the point where you are looking at paying off debts seriously, then hopefully you've started to note down all the debts so keeping track of them should get easier in that sense. Sure, you might want to tidy up a few lower numbers if you can, but if you have $10k of debt with $1k on 5%, $4k on 7% and $5k on 20% it makes absolute sense to clear the debt charging 20% first - you're just punishing yourself financially otherwise.

Debt? Why we I lead money from government or banks for no good reasons and it will be pressing me down not able to pay back. It is very bad for us to rely on taking loan in any forms because this can cause unreasonable debt that will affect us whether now or later and there are even some persons that are still paying debt they do not know about till now.

I always try to avoid unnecessary expenses and debt scares me a lot so I try to stay away from debt even if I am in trouble for a while. So already I go into less debt. But when I face a big financial problem I have to go into debt. Because of this, I don't have to adopt any special strategy to reduce my debt. It is better to avoid the debt issue as it puts us under a different pressure and has to pay a high amount of interest along with the repayment period.

Yes, it's true, avoiding debt from the start is the best thing to do, but if we are already entangled and want to return to normal life, then my choice is to focus on paying off debt with the largest nominal, so I agree about that. But what I see now is the wrong step they are taking, those who are already in debt are digging a hole to close the hole, yes they are taking a new loan to pay off their old loan, until whenever they will never finish not being in debt if they continue to do things like At this point, their situation will only get worse.
This is a valuable lesson for those who have not been touched by debt at all.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

My choice of debt reduction is using gold as collateral. When we use gold as collateral it is possible to get loan amount at a much lesser interest than that of the personal loans or out of other loans available. It ease out to pay the amount directly to the gold loan account, which helps with the easy completion of debts than going for borrowing and other property based loan schemes.

Even if we were unable to pay the settlement amount at the mentioned time period, it is possible to pay the interest and last the time period to settle the loan.

I also think the method you are stating is the best method in paying debt.  This is called Debt Avalanche method, this will lessen our losses due to high interest of debt.  In this method we prioritize the debt that has the largest interest rate.  See the difference between the two methods:





For me, it is the one that is in the nearest due and after settling that, I would prioritize the one with highest interest.  Defaulting on loan can give us more problem and extra interest, so prioritizing loan that is about to due is the best decision. 

Yesterday I watched a video about a businessman who took out a loan of 500k to develop his business and he claims that if he had the opportunity, he would take an even larger loan. I don’t know if this is a different way of thinking, or something else, but just the thought that I will have to repay such a debt becomes scary for me.

I understand that debts can be bad and good, but my upbringing does not allow me to think in such categories, I am also convinced that any debts are bad. Apparently, borrowed money can help you reach your goal much faster if you know what needs to be done for this and you only lack the financial resources for this.

If you want to change your financial situation, you must first be debt free. If a person has debt then that person can never achieve financial success. If it is not very necessary then it is better not to take a loan. And if you are already in debt, try to pay off those debts. Paying off debt will require you to work harder where you are at work and make some lifestyle changes. That is, if you live a very good life before, you have to reduce the standard of living so that you can save money and repay the debt with that money. You will have no pressure when you are debt free. And then you will be able to enjoy your life in a beautiful way and will get a lot of financial prosperity.

this method is quite good considering that we can pay off our debts in a more controlled manner and maximize the funds we use. we can avoid piling up debts and make debt more effective. Listing all of our debts will also make us more aware of our future ability to pay off these debts and take the necessary steps to increase income and settle these debts.

but for debt with accumulative interest, it's good to prioritize it first because from my past experience, I don't prioritize debt like this and in the end after calculating the total accumulated interest this is quite high too and can pay off some debts. so it's a good idea to prioritize debt with accumulated interest to be able to avoid ineffective debt payments.

This is also my strategy, or being a good payer, because if you don't want extra fees on paying it, then pay it early, and you will be a good payer also, and you can have a loan again soon if needed. I don't have experience with credit scores, but I've read a lot of people that are really taking a loan or getting a credit card because of this, as there are a lot of promotions and discounts on it, but still, I am not that interested in this because it is still a loan that I don't need. The only thing that I want right now is to have someone or a corporation that I can easily take a loan from for emergencies.

While I also use this method to make sure I'm always debt free like yourself, I also have to reduced my expenses and concentrate on my needs first then whatever that's left after saving that's what I use to take care of some of my wants. I know I don't necessary need to do everything my body wants because I'll go broke doing so therefore I prioritize the important wants and let go of the others.

When you plan your life very well that you hardly get into debt like most individuals, people will think you have everything and that you're making lots of money but they don't know that you have your strategies that you use to keep yourself debt free like saving more to invest.

I have several debt from before and until now, it's not like I badly need the money, but I have to - just to increase my credit score and limit to make massive loans like business related ones that needs massive capital. That's my primary plan in taking this debts. In my own experience in paying these debts, I don't really have a method instead I pay them just before the due date and pay in advance for a month or two when I get to have enough money left from my monthly income and yeah I have to cut on my unnecessary expenses too when due date in approaching.
My method is simply get rid of penalties and struggles to catch up with debts beyond due.

My debt reduction method is never getting into debt in my life. I save a large portion of my income and tap into my savings when I need to make a spending. Even if there will be a need for a big emergency spending, my safety net will cover it. From my point of view people should be avoiding debt as much as they can, but it seems like a lot of people do it without thinking and then end up with a headache for many years to come.

One approach is check which one is incurring large interest. Better pay them first before you rack up those interest big time.
And then, as much as possible, don't borrow more money, better pay off all your debts first.
That means, live below your means, save as much money as you can, don't buy luxury items.
Stop yourself from buying impulsively. Once you clear your debts, you will feel better for yourself.

If some of your debts are from the banks, you can talk to them and ask them to at least mitigate the interest so that it won't keep on rolling on. And explain to them that you need some adjustments with their interest rate so that you can pay them.

Most banks are considerate in terms of this situation so that the debt will be cleared from their customers. They get their initial money that's lent to you and at the same time they will still get interest from you.

The same goes to the personal lenders, I think it is not that much to talk to them and ask them when you're having trouble of paying it and just explain the situation so they can adjust and help you out unless they don't want any adjustment.

Whether you like it or not, debts sometimes arise. Of course, most people have no desire to get into debt, but unforeseen circumstances can always arise. Before you take on debt, you need to assess how necessary it is. In order to pay off debt effectively, you need to restructure it properly. You can always find a bank with lower interest rates and better terms.

I didn't use any method (or maybe I did, I just don't really know the name), but I just tended to avoid incurring any debts as much as possible when I'm under one. Of the ones I'm in, I try to pay the one with the biggest interest rate first then slowly whittle it down from there. I never try to reduce the payments I pull out from my wages, It's always the same regardless of how many debts I have so that I can pay it a lot quicker, making me pay less in the long run. I frown upon trying to take debts under me, regardless of how beneficial they can be for me for now. It just doesn't sit well with me imo. Well things might change in the long run depending on how much I learn more about stuff like this, but for now? Big no no.

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.

I haven't had multiple debts, but right now I do have debts and other bills, but what I really do is pay them off online. There are due dates on them, so I should pay them on time when my salary arrives. The best solution to this really is to increase your income because that is your main source to solve it, like finding a side hustle or working more hours, anything that can earn money, because it is really difficult to get out of debt if you still don't have enough money.

The debt is more like a mouse trap, you get a large piece of side quickly, but the more late, the more the trap holds you, the greater the pain. Therefore, the smaller your debt and the fastest in payment, the better, the more late, the more revenues pay the costs of paying the debt with an amount that may be greater than the amount of the debt.

So you do not borrow except in the case of necessity and when you borrow, try to pay your debt first before you habit and drown in debts.

I finish off debts that ask for high interest per month, and move on to the next that has lower ones and eventually pay them off. Or better yet, before I even take out a loan, I'll check what the interest could look like every month before I sign the deal. That's why it also pays to have a good credit relationship with your bank since they are handing out loans that are quite favorable to their users that have a good credit standing with them. Right now I'm debt-free, though I had a year-long stint of having debts left and right after being hospitalized, and paying the ones with high interest are the ones I prioritized. After that, it's just smooth sailing from there.

Snowball method works if you have all the time in the world and is okay with paying some interests over time on some of the debts that has a fixed due date, but it's not very economical and might bite you in the ass in time.

It makes more sense to pay the debt that generates the higher interests rates each month, credit card debt is especially bad as if you get enough of it you could get to the point in which even making the minimum payments could become difficult for you.

Another option is to pay that debt by asking a new loan with a lower interest rate, as over the long term you will pay less money this way, 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.

It doesn't really matter if it falls under it or not. Heck I didn't even know there is a name or a method of how you pay your debt hehe. Just meet the deadlines and you should be able to clear all the debts in due time. Of course it would great if you don't incur new debts while paying off the older ones.

I don't have debts at the moment. But I think the priority consideration in paying debts is to make sure those bigger ones won't accumulate additional interests for missing a payment. That would be risky. You might be buried in that debt. It may balloon beyond your paying capacity.

Those smaller debts, you can sometimes postpone the payment. You can also save small amounts daily so that when the due comes, you won't have to worry about it. You can probably even talk to the lender not to add additional interest if you only miss a month's payment or if you pay a partial amount. I doubt you can do the same to large debts.

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.

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.


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?

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.

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) 

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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/