The Fastest Method for Paying Off Debt

[jimf]

its not a math problem, its a behavior problem.

[mmac]

Dave is a behaviorist and knows most people need small rewards to keep them on track.

[timmymiron]

Why Dave says to start with the lowest credit card, it's to give people hope, you see a result faster and tell you that it's not hopeless

[azumieikichi]

Dave is saying you have to build an habit first, start by attacking your smallest debt. Once you win you become addicted to it

[undomiel]

Your way is the correct and more efficient way. But if someone feels overwhelmed by their debts, it can be useful to get some of the smaller ones out of the way so that they can release some tension and be motivated to go forward

[hereigns_oneaboveall]

Dave Ramsey thank you for helping me pay off my I'm. Retiring at 45 years old

[akshaysingh]

Dave's rationality is not about paying debt fast. It's about changing debt behaviour permanently. He often said the problem is not maths, its behaviour, it's the debt mentality. If the problem was maths, people would not be in debt in the first place. And most of the debt he talks about is retail credit card debt and overspending. So paying off the smallest debts first inculcates in the mind that you are getting rid of debt one by one and never going back. Those small victories of seeing debt gone one by one encourages the person to get out of debt. That was his point.

[Jball]

I'm doing the snowball method and it's an awesome feeling when you knock out credit card balances now I can focus on my bigger ones

[dwtcfbg]

Dave Ramsey
knows the psychology that people don't have the attention span to concentrate on something big.
Once they visually taking care of one small one
They become proud of themselves and get the momentum to do the rest of them.

Dave's plan is practical for people that want to see instant gratification. And he probably figures psychologically people don't have the attention span to tackle a big Bill first.

While hers is logical. His is more practical for the group of people he's talking to.

[joshuapowers]

The point is small victories. Those small achievements are motivating. Some of you don't even have 1k in the bank.

[juliopantoja]

Either way is ok not everyone can do avalanche sometimes it’s best to do snowball it gives. A sense of accomplishment

[ADR]

Yes, paying off the highest interest is the way to go, but seeing a complete bill get deleted faster with the snowball method shows some sense of accomplishment. I followed the snowball method. Yes it took time, and finally, the day arrived when I paid my last dollar of consumer debt. It works. Those small accomplishments is what you need to see.

[Sandyyyyyyyyyy]

I actually like a bit of both. Start off the with debt snowball to get a couple of easy wins under your belt and then switch the avalanche. For me, those smaller debts weren't my highest interest debts but they were definitely high interest. Not having to pay those cards each month helped me get through the first few months of my debt-free process

[ryangray]

Dude people recommend the snowball knowing you’ll pay more interest because it is statistically more likely they’ll actually stick with it and pay off the debt. Tackling the small ones builds momentum

[lumo]

Don't diss Dave!! He's helped so many of us become wealthy. Seriously.

[PlayYourSongz]

Dave is promoting consistency, nothing wrong with that.

[mmac]

Dave is talking about changing habits, and small victories are motivating by reaping the reward of a faster reward. Yes, the higher interest is faster, but may not anchor the behaviors he is trying to help them develop.

[Ellie-vcow]

One important note is that some people struggle with the avalanche method, the snowball methods give you little wins early on so you get dopamine hits and are more likely to keep trucking through and getting more done. The avalanche method has a higher fail rate

[dr.tanakadune]

The idea is that many if not most people can’t do the avalanche…the psychology of debt matters…it’s small wins that get you motivated hence the snowball -

Love your content 🙌🏾

[HYPERMANCE]

I got a tip. People have to stop spending money they don't have. Dave Ramsey's method is to pay off the lower debt and use the extra money to pay off the next debt. It's about having less debt to manage. Also, Dave's intention is to help people not to shame them.