Not trolling anything boss...his advice is genuinely bad advice considering it keeps people in debt longer than necessary. You can get out of debt faster by applying the same cash outlays (ie payments) to the debt with a higher interest rate first...not by doing some silly debt snowball nonsense.

Someone show me the math that states paying low interest balances before you pay off higher interest balances creates a situation where the debt is paid off faster (all payment amounts being the same) and I'll admit I was wrong and retract everything I've said.

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Posted by RedHawk

Baton Rouge

Member since Aug 2007

8856 posts

Posted on 1/8/20 at 2:01 pm to iAmBatman

quote:
Not trolling anything boss...his advice is genuinely bad advice considering it keeps people in debt longer than necessary. You can get out of debt faster by applying the same cash outlays (ie payments) to the debt with a higher interest rate first...not by doing some silly debt snowball nonsense.

Someone show me the math that states paying low interest balances before you pay off higher interest balances creates a situation where the debt is paid off faster (all payment amounts being the same) and I'll admit I was wrong and retract everything I've said.

I don't think anyone would disagree with you from a math standpoint, we are talking about a psychological standpoint. Sometimes people need to crawl (baby steps) before they can walk or run.

Paying off the lowest balance first makes sense for a lot of people to feel a sense of accomplishment and then from there they feel they can tackle the rest.

Barely putting a dent in the highest interest rate highest balance card might stagnant their progress as they see no end in sight so what's the use.

This post was edited on 1/8/20 at 2:04 pm

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