Listen, I was skeptical when I read the title of this article from Semi Retire Plan as well. The Debt Snowball Method… that’s for people who don’t know about math!
For those of you who don’t know what the debt snowball method is, quickly:
The debt snowball method essentially is paying off your smallest debts first and moving on from there, regardless of if your smallest debt has an interest rate of 2% or 25%.
The theory is that as you get small debts paid back, the momentum starts to pick up and it gets easier to pay the bigger debts back.
While I do not support this method (I think paying off your highest interest rate debts first is a no brainer), there are some really interesting phycological implications behind the debt snowball method that can be applied broadly across your life (which is why Dave Ramsey is a big fan of the strategy).
Learn more about these great lessons below.[Read more…] about Broader Lessons from the Debt Snowball Method