My Debt Blog

Today I listened to the Dave Ramsey show for the first time. As I mentioned in my prior post, Budgeting Tools I used to listen to Everyday Wealth Radio every week. This show is daily and I found it very inspirational. I like the direct, straight to the point, no sugar coated advice he gives to callers regarding their debt.

I decided to search out to see what Dave Ramsey does, and it seems his “snowball method” of debt repayment is quite popular. Instead of doing the math and looking at debt in terms of, “What is costing me the most money in interest?”, his approach is more along the lines of, “What can I easily pay off and roll that payment into the next smallest debt?”, which in theory sounds great. I think the second method only works by the simple fact of seeing what the savings would be on the lower debts would have cost you by the time the highest interest debt is paid off.

I am going to seriously consider looking at adopting this type of payoff plan, but at the same time look at ways to try to roll my high interest debt into a lower interest vehicle like a consolidation loan if possible. One thing I take pride in is that even though I have some debt, my credit is great, and I am completely current on everything. It frustrates me to just keep making payments and not feeling like I am moving forward, and I have some smaller balances on two of my accounts that I could probably push to pay off this year. I’m just glad I got my stove and furniture for my house paid off this year. A lot can happen in the 8 months remaining this year and it would be great to be in better shape next year.

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