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 … Read more

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 … Read more

Where Do I Put My Judgment in Line For My Debt Snowball? – Bret

In 2006 ,I went to work for a guy that wound up being a con artistTo make a long story short at the beginning of 2007,Ilooked up and found myself with $230 K in debt and no income.everything in 2007 went wrong and it wasnt until 2008 that I began reestablishing an income. I have … Read more

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 … Read more

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 … Read more

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 … Read more

Converting 8.9% Variable Credit Card to 3.4% Variable Equity is Bad Deal. George

“Dear Steve, I have $22K in credit card debt(on one card) with an 8.99% variable rate. Minimum payment is about $450/month. I have recently began to pay more than the minimum(last month i paid $1000) since I would love to pay this off or at least bring it down so my minimum payment isnt so … Read more

I’m Doing the Dave Ramsey Debt Snowball And Need to Find Extra Cash. – Greg

Greg “Dear Steve, I am doing the Dave Ramsey debt snowball. I have canceled my 401K contributions, my 529 contributions, and altered my W4 exemptions. What else can I do to save on expenses so I have more money to put toward my debt? Greg” Dear Greg, The debt snowball approach is a good way … Read more

Judy Is Worried “Should I Save or Pay Off Credit Card?”

Judy “Dear Steve, Should I save the amount after paying off a credit card debt or pay down another. Help please. Judy” Dear Judy, You asked a great question and one that seems easy but has different valid and possible answers. If you are digging yourself out of a debt hole the initial knee jerk … Read more

Should I Payoff Part of My Debt With My Mutual Fund. – JJ

“Dear Steve, I owe $30,000 in credit card debt on two cards. One card there is 9.99% rate, the other is interest free until Dec. ’10 (after that the rate states 9.99% but is subject to change) I can make the minimum payments but not much else right now until my balances decrease. I have … Read more