Comments on: Is the Debt Snowball an Atkins Diet? http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/ Personal Finance, Investing and Economics Tue, 15 Jun 2010 16:44:15 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Jorge http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-5104 Jorge Fri, 04 Dec 2009 02:50:39 +0000 http://personalfinanceandinvesting.com/?p=31#comment-5104 People just need to vastly increase their knowledge and awareness of financial literacy. If you are financially literate, you can go much further in life and even have greater potential to build your net worth. People just need to vastly increase their knowledge and awareness of financial literacy. If you are financially literate, you can go much further in life and even have greater potential to build your net worth.

]]> By: Brad http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-31 Brad Fri, 13 Mar 2009 17:21:48 +0000 http://personalfinanceandinvesting.com/?p=31#comment-31 Sure, but those minimum payments are proportional to the balances, so while I'm not an expert on minimum payment calculations, I would think that as the balance of the higher balance one went down your interest rate would go down proportionately, however if there's a constant applied, then you're absolutely right. I will investigate. Great observation MP. Sure, but those minimum payments are proportional to the balances, so while I’m not an expert on minimum payment calculations, I would think that as the balance of the higher balance one went down your interest rate would go down proportionately, however if there’s a constant applied, then you’re absolutely right. I will investigate. Great observation MP.

]]> By: Money Progress http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-30 Money Progress Fri, 13 Mar 2009 17:00:49 +0000 http://personalfinanceandinvesting.com/?p=31#comment-30 The cash flow would be the same at the beginning, however with the debt snowball method you will pay off one (or more) of your balances quicker, therefore eliminating that minimum payment. The cash flow would be the same at the beginning, however with the debt snowball method you will pay off one (or more) of your balances quicker, therefore eliminating that minimum payment.

]]> By: Brad http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-28 Brad Wed, 11 Mar 2009 01:09:43 +0000 http://personalfinanceandinvesting.com/?p=31#comment-28 @MP: If people need motivation other than the balances going down, maybe they should break their debt up into some kind of chunks? @Jeff: How do you feel that cash flow is better in the Debt Snowball than otherwise? Presumably you're making all your minimum payments on your debts either way and then putting the rest towards a particular debt. In either case I would think cash flow would be the same. Or is there a wrinkle I'm missing? @MP: If people need motivation other than the balances going down, maybe they should break their debt up into some kind of chunks?

@Jeff: How do you feel that cash flow is better in the Debt Snowball than otherwise? Presumably you’re making all your minimum payments on your debts either way and then putting the rest towards a particular debt. In either case I would think cash flow would be the same. Or is there a wrinkle I’m missing?

]]> By: Jeff http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-27 Jeff Wed, 11 Mar 2009 01:00:09 +0000 http://personalfinanceandinvesting.com/?p=31#comment-27 What about cashflow? I feel that the biggest benefit of the debt snowball is that it increases cashflow, which gives you flexibility to deal with unexpected expenses. What about cashflow? I feel that the biggest benefit of the debt snowball is that it increases cashflow, which gives you flexibility to deal with unexpected expenses.

]]> By: Money Progress http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-25 Money Progress Tue, 10 Mar 2009 19:47:30 +0000 http://personalfinanceandinvesting.com/?p=31#comment-25 Yeah, the debt snowball method could possibly be good advice for some, but if I was in debt at this moment I don't think I would follow it. I would always go for the highest interest rates first. Is that really a much harder principle to follow than paying off the lowest balance first? Perhaps if there was a good method of showing progress comparable to a balance being wiped out like with the debt snowball. Yeah, the debt snowball method could possibly be good advice for some, but if I was in debt at this moment I don’t think I would follow it. I would always go for the highest interest rates first. Is that really a much harder principle to follow than paying off the lowest balance first? Perhaps if there was a good method of showing progress comparable to a balance being wiped out like with the debt snowball.

]]> By: Brad http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-23 Brad Tue, 10 Mar 2009 19:02:23 +0000 http://personalfinanceandinvesting.com/?p=31#comment-23 Certainly compelling, but at the same time doesn't that seem to be arguing for the quick-fix instead of actually sitting down and figuring out why you can't/won't get your arms around finance? Certainly compelling, but at the same time doesn’t that seem to be arguing for the quick-fix instead of actually sitting down and figuring out why you can’t/won’t get your arms around finance?

]]> By: Protoscopic http://personalfinanceandinvesting.com/archives/is-the-debt-snowball-an-atkins-diet/comment-page-1/#comment-22 Protoscopic Tue, 10 Mar 2009 18:44:06 +0000 http://personalfinanceandinvesting.com/?p=31#comment-22 Interesting parallel. I think the counter argument of course is one of simple efficacy. Some people just don't have a good mind for finance and if they can fool themselves into feeling better about what they're doing, the result is better than if they shoot for the moon and fail. Interesting parallel. I think the counter argument of course is one of simple efficacy. Some people just don’t have a good mind for finance and if they can fool themselves into feeling better about what they’re doing, the result is better than if they shoot for the moon and fail.

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