Following up on previous post: Avalanches & Snowballs
I forgot that I did this previously back in December, here. But, I included my student loans in the previous equation. In this newer calculation, I have excluded the student loans (locked at 3.25%). The reason behind that will be included in my next post.
Using the Debt Snowball Calculator
It will take me 32 months to pay off approx. $48,000 of debt
If I Avalanche:
Total Interest Paid $7066
By Ramsey’s snowball method:
I will pay $1,583 more in interest for a total of $8649
Of course, I need to assume that I will find other income streams to make this debt repayment go by faster. Thereby, saving a substantial amount of interest if I Avalanche.
I was looking at my spreadsheet and noticed that many of my high interest cards/loans have small balances on them (those pesky revolving store credit cards). So, it would be worthwhile for me to Avalanche, because I would still get the same satisfaction of Snowballing with the added bonus of interest saved.
Verdict: I am switching my spreadsheet to reflect paying down my debt with the highest interest first.
Happy Monday, fellow bloggers. ~ Money Funk