Snowball – What’s your method?

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I’ve had this link on my blog before without actually ever trying it out. And now that it is a holiday weekend, I have time to try it out (and I linked it back onto my blog).

It is very easy to download and use. Just plug in the numbers and sort as you will… Wha-la!

For approx $79,643.15 of debt, here is what will happen if I payoff by:

  • highest to lowest monthly payment: $11,416.24 interest paid
  • snowball (Dave Ramsey Method): $12,972.89 interest paid
  • Highest to Lowest APR: $11,116.36 interest paid

Either of the 3 methods will be PIF in March 2013.

  • 3 Major CC/Auto Loan paid off the end of 2010 (car target date April 2010).
  • 1 HELOC PIF end of 2011
  • 2 School Loans PIF June 2012 & March 2013

Interesting configurations. My take: I am going with paying the highest payments first. I like the fact that my Auto Loan will be knocked down as one of the first. Especially considering cars depreciated so fast! I am at 65,000 miles on an upside down car loan. It is important to me to knock down that loan in case of the need to sell the car.

Have fun with the spreadsheet! I’d love to hear what order you are paying your debts and why you chose to go that way. πŸ™‚

Happy Weekend!

5 thoughts on “Snowball – What’s your method?

  1. jpkittie

    thanks for the link – I will have to try it. I love that there are 3 different iteas there! Fantastic!

    Lets hope it says nice things πŸ˜‰ lol — your debt free date really isn’t that far away! I am sure that mine will be very similar to yours… We have about the same $ in debt. 4 years really isn’t so horrible, you know?

  2. Sharon Rose

    Hi there-wow, what very interesting different scenarios, its excellent how it shows the different interests payable over the different methods. Now I’ve only 3 loans, my payments are set for the next 32 months-I’m counting down too!


    I have two debts. My car which I am about 2 years ahead on the loan right now and a credit card. I owe about the same on both right now (within $600) but I am paying off the car first because the total monthly payment is much higher than the credit card and it will free up more money (of course to snowball on the credit card).

    I am hoping to be Debt Free by the end of 2009. We will still have our mortgage and will begin to pay extra towards it in 2010.

  4. Money Funk

    @ jpkittie: really 4 years is not bad considering how long we’ve been living with the sideblinders on. πŸ˜‰

    Although it took some getting used to, I now enjoy knowing exactly where we are going. Charted land, Ho! lol!

    @ Sharon Rose: I can’t wait until we can blow the party horns for eachother. Then, we are going to need to figure out what we plan on doing once we are out of debt.

    @ becomingdebtfree2009: Great job on the car! I wish I could say the same. Hopefully, real soon.

    And of course, to snowball those payments on the next card. πŸ˜‰

    Awesome job! And your new layout is nice and clean, too.

  5. Moving on up!

    I paid the smallest credit card debts first. The interest rates weren’t much more on the larger debts. It did feel good to pay off the small one!

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