Money Management-Which Debt Do You Pay Off First

All the experts have strong feelings on which debt you should pay off first. The most prevalent advice seems to be pay off the debts with the highest interest rates first. While this makes perfect sense to me I believe in a hybrid strategy. We all need some instant gratification and a sense of accomplishment-so I often recommend paying off one of your smallest debts first. It gives you reinforcement on your debt management program and gives you the confidence to move forward with debt elimination.

There is a new tool out called the Snowball Calculator which allows you to enter up to 20 different debts with their associated APRs, and the total amount you want to spend per month servicing your debts, and it will work out the order in which you should pay them together with the monthly payments.
Thanks to Lifehacker for the heads up!

Steve Mertz

Debt Be Gone!

2 Responses to “Money Management-Which Debt Do You Pay Off First”

  1. J.D. @ Get Rich Slowly says:

    As I posted at Lifehacker and my own site, this calculator isn’t actually a Debt Snowball calculator, as it purports to be. In fact, it doesn’t use the Debt Snowblal method at all. It’s actually just the opposite. Very misleading.

  2. Steve Mertz says:

    Thanks JD -so what the heck are we looking at? Does it have any value and where do we find this infamous calculator? Thanks again for the heads up! Steve

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