Comments on: Dave Ramsey’s Snowball Method vs. Suze Orman’s Method for Getting Out of Debt

By: Mike

Mike — Tue, 10 May 2011 16:32:24 +0000

I go for Dave Ramsey. It’s a clear-cut way to live worry-free about money.
I am currently on Step 6, myself.
I’m blogging about how I plan to pay down my mortgage by age 30.
Check it out if you want.
I am living a happy life, and now a less materialistic one… thanks to Dave.

By: Daniel

Daniel — Tue, 15 Mar 2011 17:02:21 +0000

I sat down one night and did hardcore math looking at every possible scenario to determine the fastest and cheapest way to pay off my debts. Here is what I found:

(background information – I have about $106,000 in debt from 25 different accounts – student loans, cars, and credit cards for both me and my wife)

The snowball method would put me out of debt the fastest and would save me the most in interest (by a couple thousand dollars) if my monthly payments were minimum to minimum +$200

Paying off the highest interest rate first would get me out of debt faster and cheaper only if my monthly payments were higher than minimum +$300

Although it doesn’t make “sense” the math shows that the snowball method is indeed the fastest and cheapest way to pay off debt, but there is a threshold at which that no longer becomes true based on how much over the minimum you are able/willing to pay.

Hope this helps.

By: Joshua

Joshua — Wed, 29 Dec 2010 10:07:41 +0000

I think this issue is 99% emotional, and 1% rational. People get into serious CC debt not because they are making rational financial decisions, but rather making emotional financial decisions. I think the roll up method is completly appropriate in this case because people struggling to pay off CC debt need all the emtional motivators they can get.

By: Lvnv Funding

Lvnv Funding — Tue, 07 Dec 2010 04:42:33 +0000

I appreciate the debt snowball tactic, specifically exactly how Dave suggests accomplishing it. If you happen to be instructing the world like Ramsay, something everyone is deficient in is definitely drive. The majority of people must be enthusiastic to keep proceeding, therefore start with the tiniest personal debt and pay it off first.

By: juniors clothing

juniors clothing — Sun, 07 Nov 2010 10:49:43 +0000

great article article…

By: Home

Home — Sat, 26 Jun 2010 07:15:25 +0000

I really like your blog very same time, help who love good advice and input to my blog.
Thank you ..

By: tomy

tomy — Sun, 02 May 2010 23:48:53 +0000

great article article…
keep posting

By: Anti-Ramsey

Anti-Ramsey — Tue, 13 Apr 2010 22:27:10 +0000

Orman’s advice is as dumb as Ramsey’s, as both of them lack any basic knowledge of mathematics.

PAY OFF THE HIGHEST INTEREST FIRST. That’s the only correct advice, no matter what those uneducated “financial gurus” tell you.

By: Vicki

Vicki — Sun, 14 Mar 2010 09:55:52 +0000

what ever you can do to keep your credit in good standing

By: Josh

Josh — Sat, 26 Dec 2009 04:00:25 +0000

Dave’s plan is more than what you said. It also includes a zeroed out budget, which you pay any money extra that you have onto your debt. Suze’s won’t work if you cannot afford 10 dollars more on each. Dave’s will as you end up paying more than the 10 eventually, but you only pay as much as you can…