Thanks for coming back again today.  Yesterday I started an article (Debt Reduction Methods – The Avalanche Method) and found that it was getting longer than I intended so I’m going to take this opportunity to “flesh out” the things I missed yesterday.  By way of a brief review, the simple thumbnail of the Debt Avalanche method is that you list all your debt by order of the most expensive first.  In other words, you look at all of your debt by way of the interest rate that you are paying and list the higher interest rates first and then the next, and the next, until you have the lowest interest rates listed at the bottom.  This particular approach is strictly based on math and not nearly as emotional as the snowball method.  That’s why the critics say that it’s not as likely to achieve fruition (in other words, be followed through to its completion).  (more…)

By Roger G. Best

There are several different approaches to debt reduction, most of which have merit.  Although this series of articles aren’t intended to be an exhaustive study of all the options, I do intend to cover the most accepted and successful methods, in order to give everyone a better understanding of the options.

The first widely accepted method is known as the debt-snowball method.  Simply put, this method encourages applying extra cash to repaying the debt with the smallest amount owed.  One of the biggest advantages it offers is in the form of personal satisfaction… You get to eliminate certain debt quickly, then apply that extra money to the next smallest debt, which will reduce the number of payments you have to make and begin to quickly reduce your overall debt.  This method is widely accepted and taught by many experts. (more…)