How To Pay Off Debt | DO NOT use Dave Ramsey's Debt Snowball

Chandler Smith has been investing in real estate for years and so he has acquired millions of dollars of real estate (and millions of dollars of debt.) However, Chandler has only acquired good debt and in this video he explains the best way for you to get rid of your bad debt. Chandler specifically discusses Dave Ramsey’s snow ball method of paying off debt. He expresses his gratitude to Dave for helping thousands of people get out of debt with this method but also shares why the snowball method is not the best way to get out of debt. The snowball method teaches to attack the smallest debt first while Chandler expresses the importance of attacking the highest interest rate debt first. This video give great examples so that anyone can understand how debt and interest work. It shows you that if you are in debt you can get out of it more quickly as you avoid using the debt snowball.

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[ChandlerDavidSmith]

Do you believe in good debt? Let me know in the comments!

[ForHisGlory]

The reason Dave recommends lower to higher debt is because of the victory. When you knock off one, you are much more motivated when attacking the next. It works, it avoids the burn out because you tasted victory already. Dave way works. I know first hand.

[lmv.]

Mathematically speaking, paying off highest interest rates first is the best way to do it but if people acted in what was mathematically in their best interest, they wouldn't be in debt in the first place. His approach takes the psychology and human emotion into account.

[brendenreid]

Your argument hinges on people having enough self control to pay off high interest debt first. I'm willing to bet that the people who have that control are not the people racking up 100k in credit card debt in the first place. Those people need a plan that helps them control themselves in a simple and gratifying way.

[kennyhayes]

There are a lot of highly intelligent people in debt that lack discipline and motivation.

[JasenWoodworth]

Debt snowball works. It helped me. People don't have control of their spending. Dave Ramsey is right. The psychological boost from knocking out smaller bills, compounds so greatly. Its empowering.

[krystaldawntiki]

The baby steps work. Debt free and 6 months of my income saved. 15 % + going into retirement. Planning on taking retirement early. Just saying.

[kiaradoxchannel]

In your example, I would pay off the student loan first because they can’t be discharged. Also, most ppl don’t have one credit card with 100k on it they have like 8-10 credit cards. So they are eliminating more accounts which might be easier for them to manage. Just my thoughts

[shakysliders]

"I don't think anyone is so simple minded, that they can't commit to paying off debt the proper way." - Dave's 30 years of experience in leading people out of debt would contradict this statement. I don't like the term 'simple minded', but the VAST MAJORITY of Americans are swayed by behavioral economics even if they don't realize it. You are recommending the 'proper' way because it is mathematically more efficient. But the problem is, if 1, 000 families began their journey to get out of debt your way and 1, 000 families tried Dave's way, it is a 100% certainty that on average the families trying Dave's method would pay off more debt faster. We are human beings, not calculators. So Dave teaches the method that is most likely to benefit the most people.

[nickschneider]

Just learn from the government: Never pay it off, and use monopoly money when you are running low.

[TrekSquad]

The example you showed is probably an outlier. 24% on a100k. Dave has done extensive research on his way and has proven to be the fastest for people to pay off debt for most cases.

[lordgodamenra]

Dude I think you’re going about this the wrong way! Dave Ramsey saved my families ass . We did to the snowball and I paid off all of our debt to include the house. Now with the corona virus and being not able to work since January we are not worried about income because not only do we have several streams of income and investments, but we have no bills. You be honest, most people, to include myself, don’t have the imaginary discipline you’re proposing to use debt the proper way. I think your way may be good for some people, but definitely not for most! I’m sticking with Dave all day!

[keenandevier]

If someone really takes out $100, 000 on a 24% interest, they were clearly not worried about saving money on paying the highest interest debt off in the first place.

[autismwalk]

I used the debt snowball method, and it worked out very well for me. 😊👍

[greg]

Dave has millionaires call in to his show all the time. Talking about their experiences using his steps to build wealth. I would love for your next video to have you interview some of the millionaires you have made by teaching your good debt principles to.

[Thebstewart]

Simple minded has nothing to do with it and that's not why dave tells people to do it that way. Emotions and behavior is the issue. If it was just as easy as doing the math and being smart nobody would be in debt to begin with. There are plenty of highly intelligent people with PhD's who are broke. Dave actually started out teaching people the exact method your talking about. What he discovered is more people failed at doing it that way more often then not. Because they got burned out before seeing results. Working the debt snowball retrains your mental behaviors and emotions. An allows people hit goals that motivate them to keep going. The fastest way to get out of debt is the method that keeps you more motivated and focused.

[davidkennison]

I think you miss the point he conveys, his guiding principle is debt is bad, it’s not a tool, most people he is talking to are in debt because they feel they can’t acquire or do things without it, his method is to help them overcome that psychological barrier by proving they can and the quickest way to show evidence of this by attacking the lowest debt and building on this. I appreciate that he also states it’s not the logical approach from a numbers perspective, but you have to ask yourself what your definition of success is, his is getting people out of debt and staying that way. If they used your logic they would have never used a credit card with a 24% interest in the first place. Hate the guys politics but he is spot on on how to attack this issue from a people perspective.

[jkpiii]

I've been listening to Dave Ramsey for 10yrs and used his program. It was the best thing that has ever happened to me!!! This guy is totally taking him out of context! The debt snowball has worked for millions of americans and suddenly the six yr real estate guy who doesn't have a fraction of the wealth Dave has wants say otherwise? Smh

[Unknown-ycnc]

Been there, done that, how I was able to get through it and fast was to do Dave ramsey's plan even though it was against what i believed in. but think about this, if people have mounts of debt most times they don't have the best credit score and can't qualified for better interest rates. So what i did was pay all the little ones first which improved my credit score, then i was able to consolidate the rest of the debt with a very low interest rate.

[victorn]

Yep! Great vid! I have very well educated friends that believe in the debt snowball, even though they understand that mathematically it is not to their best advantage. Emotions get the best of people sometimes