Why The Debt Snowball Method Actually Works!

George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.

This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.

[egs]

It does work and smallest to largest is the way to go

[rolandosouffrain]

I did what worked best for me. I had over $60k in credit card debt. I paid on the highest interest first. I will be debt free in 2 months. I say do what works for u not everyone is the same.👍🏾👍🏾👍🏾

[ianwerkheiser]

I agree that psychology and getting early wins is what matters most. If you were rational about interest rates, you wouldn’t have gotten into credit card debt in the first place! My only quibble is that some loans (e.g. to family members) might be much more psychologically taxing, in which case bumping them up a bit in the order can give you an even bigger early win. Either way though, do what motivates you.

[BrianNC]

Besides Papa Dave, you're my favorite Ramsey personality. Keep up the good work!

[LorettaNance]

My upholder personality could not do that once I saw the interest I was paying. I vote you do what works for you!

[NeoSoulCrew]

Im a Ramsey skeptic but this actually makes perfect sense. If people could do it mathematically they wouldnt have fell in debt.

[thealexandraway]

Let alone this method feels less stressful!

[sarahshealthyrecipes]

Took us 5yr and 2 kids, job loss/gains but we did it! It works! That last personal loan of $10, 000 made Thanksgiving and Christmas family dinners so much easier once we paid it off! Never going back!

[joshbarrow]

I have 3 chunks of debt. A 2 year 6000 dollar car loan at 5.06%, a line of credit at 9800 at 18.9%, and a credit card at 22, 000 at 25%. I would love to start the debt snowball, and I understand the behaviour and stuff. But by the time I pay off my debt doing it the debt snowball way, vs the high interest way, I'll have lost thousands of dollars. I believe in myself, and I believe I will have just as much motivation doing it the one way as the other.... it just makes no sense for me to pay off the 5% interedt loan while I have 22 grand at 25 percent. I can't do that.

[emmajeanhayden]

Please don't forget the eviction records please pay old records, on the property records you CAN'T rent or get loans

[emmajeanhayden]

I say THANK GOD for the snowball method, it really works 😀,

[tikahaake]

This is so true. Don’t make it complicated 😊

[sarahshanahan]

Many cases debt is a behavioral problem... but not all

Medical debt is a prime example where it is not behavioral
Medical debt is the #1 reason for bankruptcy in the usa 😢

I used avalanche for my debt and it worked great and I saved alot of money on interest this way. (I was required to get a masters degree for my job unfortunately..)

Know yourself.. use what works for you. Thats my belief.. but snowball can really help people who need motivation

Love what you at the ramsey buisness does for everyone!! No shade here.. I just see things a little wider perspective

[davidphones]

It really does make more mathematical sense - if you’re in the small group of people that think rationally. Most debtors are irrational though, so that’s why the debt snowball works

[TheWealthElevator]

The debt snowball method is effective, yet investing in assets such as rental properties or syndications might be a more strategic use of available funds than debt repayment. Targus primarily targets individuals with lower net worth who are burdened by debt. However, for those with a net worth exceeding $1 million, it's often more advantageous to focus on wealth accumulation rather than debt elimination. Repaying debt is not necessarily synonymous with achieving financial freedom.

[davysmith]

yep all mental, kill the small debts first, feels good man

[poqltbw]

Working on this but it is 😮just taking a while

[the.benberry]

We did the debt snowBANK method and it's soooon much better!!!

[misseyespy]

I am doing largest smallest pay less interest

[possle]

Do you apply this technique if the debt is 0% interest or leave them till last?
Does the same apply regardless of whether its a loan or credit card