Debt Snow Flake vs Debt Snow Ball
So the Debt Snow Ball is a leading debt payoff system, created by Dave Ramsey who is a leading personal finance expert.
So the Debt Snow Ball is a leading debt payoff system, created by Dave Ramsey who is a leading personal finance expert.
The Debt Snowball is a way of paying off debt. Here is how it works:
Make a list of all of your debt from smallest debt to the largest debt in dollars.
Make on time monthly payments that cover the minimum payments each month.
Attack the smallest debt on the list hard after making the minimum payments on all your debt. You can sell stuff, work over time, get a second job, etc. Send as much money as you can as often as you can.
Once the smallest debt is paid off to zero you then repeat this process with the next debt in line. Keep in mind that since the smallest debt is gone, you now have that minimum payment not being used. So you take that payment and send it to the second. Repeat and repeat until your debt free.
Well what I did was the Debt Snow Flake. The debt snowflake is paying the minimum payments each month and saving as much money as you can to make a lump sum payment towards a debt. I worked extra, I sold things I did not want or need and I got on a strict budget. It was not the most effective or efficient. But when I first started I did not know of Dave Ramsey or his teaching yet. I make lots of progress and finished following Dave Ramsey and his plan.
The Debt Snowflake was slow but it allowed me to save money in case life happened. It provided me with a comfort pad in case I needed it. I recall this story to share with you that paying off debt is hard and it takes time. But you must do what is best for you. As a financial coach I cannot recommend a plan without evaluating your financial situation. But I think we all agree that getting out of debt is extremely important. Also I wanted to share just how ridiculous “the debt snowflake” sounds and is.
Dan Roman is a Husband, Father, and writer that releases a daily blog. A quick read on money, marriage, parenting, self-improvement, development and his thoughts. Dan is also Founder/Creator of Roman Solutions, a Personal Finance Firm that currently provides coaching and education.
To connect with Dan visit: linktr.ee/bydanroman
Or by email : financialdifference@danromansolutions.com