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If Someone Tells You to Pay Off Largest Debts First With Debt Snowball, Get a Second Opinion

I love it when smart college professors do research that helps to break incorrect assumptions. And that’s what Alexander Brown and Joanna Lacey did in their paper “Small Victories: Creating Intrinsic Motivation in Task Completion and Debt Repayment.” Since 1994 I’ve been going on-and-on about the prevailing logic of the debt snowball or payment reduction …

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Debt Snowball is Reducing Our Debt But What Next? – Doris

“Dear Steve, We owe 172,000.00 on our house and live in CA. We are in our late 4o’s with a net worth of 200,000.00 not including my pension. We both have another 20 or so years to retire. My husband is self employed as a painter therefore we have to put away extra retirement for …

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Can We Afford the Debt Snowball to Get Out of Debt? – Julie

“Dear Steve, We started our own business about 6 years ago. We had just finished building a new house and the business was one that takes a few years to build up. Not enough income coming in, lots of new expenses for the business led us to the perfect storm of debt. Now our business …

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Teresa Writes In “I Have Too Many Credit Cards”

Teresa “Dear Steve, I have too many credit cards. Where do I start to get rid of them? Teresa” Dear Teresa, Credit cards don’t magically appear in our wallets or purses. They appear because we have done something or participated in some process to agree to these credit instruments. The first step to get rid …

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I Went Bankrupt in 2005, I am a Disabled Vet, and My Student Loans are Coming Due. – Ben

Ben “Dear Steve, I am about to turn 30 years old and my financial picture is basically in the dumps. I have a B.S. in accounting and for the moment a good job that pays me less than 95% of the rest of the world makes (less than $30k/yr and not a single benefit). I …

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