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A New Hope For Our Future And Income

Debt Avalanche? Debt Snowball? No..Well Yes But Not Really.

Good evening fellow readers,

Well enough of those pleasantries lets get into the dirty debt details. People like numbers and for some reason they like seeing other peoples numbers. Don't believe me then just look at the numerous amount of Income Reports throughout the internet.

People love that stuff. I think in some form it gives them hope and for others it seems to fuel their vitriol for claiming falsehoods and shouting foul-play usually when they have no proof in hand. I know people like to reference other peoples debts as well either to feel better about themselves or help them realize they're worse off than they thought.

One thing my college professor taught me was numbers don't lie.

Well here's my numbers or more specifically our student loan and credit card debt numbers that I whipped up in excel:

debtpayoffmethods

The Initial Attack Plan – Game On!

So as you can see I was working on debating the best methods to use to pay off our debts the quickest. Logically (calm down hardcore debt snowballer's let me explain before commenting…) debts with the highest interest rate compound more rapidly. That PayPal credit card up there was probably created by the forces of darkness along with Discover card.

So my two highest APR credit cards are that PayPal card and a Chase card. It would be in my best interest (no pun intended) to destroy those debts as quickly as possible. With those two credit cards out of the way my next highest interest rate is 9% fixed as in no variable rate. That 9% isn't going anywhere.

PayPal and Chase they're waiting. Oh they're so waiting for me to mess up a single payment so they can skyrocket their interest rates and bleed as much money as they can.

I'm not going to let that happen!

I'm pulling money from every available resource I have to backhand that PayPal credit card back to the underworld from once it came and I'm doing so with one of the largest initial payments I can muster which is $866.56.

That should help me some initial quick results while still staying on target for a large APR card. The goal here is to get PayPal credit gone before the end of this year is up. That's roughly 90+ some days.

The Second Attack Wave – Call To Arms!

So after PayPal and the Chase credit card are knocked out my focus will likely switch to the debt snowball method.

Here's my reasoning behind this and why I'm choosing the hybrid route. Those two higher APR credit cards will take some time to see overall progress even with an aggressive stance but after they're gone those 3 smaller debts sitting in the snowball report will feel like very quick wins once we refocus payments on them.

I imagine with the higher APR cards eliminated a lot of those smaller debts under $1,500 will even feel like instant gratification plus with their lower interest rates they aren't compounding interest at the rate the top two currently are.

What debt payoff plans have you used that worked well for you?

About the Author Adam

I'm just a guy looking to build a better life for my family by cleaning up some of our past financial mistakes.

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