So, I was blogging around (sounds minutely dirty) an stumbled across a great post. It comes from Scott’s 7 million in 7 years Blog, (here). Which discusses Snowballing versus Avalanching.
1) Ramsey’s Debt Snowball versus Adrian’s (scroll to bottom for About Adrian) mention of the Debt Avalanche.
Debt Snowball : Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.
Debt Avalanche: pay off your largest interest rate debts first, thereby giving you a faster â€˜return’ on your debt payment and truly, mathematically paying off all your total debt the fastest.
I plan on researching the figures for Avalanching w/ the possibilities of revising my budget spreadsheet. I know most like the quick feedback from the paying the smaller debts first, but would you consider avalanching if it will pay off your total debt faster? Something much to consider because I know we all want to get out of debt, now! 🙂