This is 10x better than the Debt Snowball
I paid off $34,000 worth of debt in a year with this odd process.
Neither the “Debt Snowball” or “Debt Avalanche” worked for me. I’ll introduce you to a 3rd option that worked exceptionally well. It’s not for everybody, probably very few actually but holy cow is it ever powerful.
How it works:
- Continue paying the minimums on everything
- Stacked every excess dollar you have into savings
- Save Until you Surpass the amount of a single debt by at least 2000
(Increase by 1000 on each iteration) - Pay off the debt in full (a Credit Card, Loans, etc)
- Repeat until debt free
Why it works:
I was in debt because I was obviously terrible with money. I had a bad habit of spending it before I made it and setting not setting anything aside for a rainy day; and when you are broke there are a lot of rainy days… Watching my savings grow by multiple of 1000s was powerful. It was hard for me to spend with it achieving new heights. I felt a sense of financial security that was long gone and felt I was improving my financial maturity. The best part is when that large credit card that was giving you a all that stress disappears in one transaction, all while knowing you left some…
