[Kayla Buell – Ambassador]

I’m such a huge Dave Ramsey fan it’s not even funny, but I can understand why you’d question this particular piece of advice. I see both sides of the issue, but I do think that psychologically there’s something to be said about paying off the smallest debt and watching as small debts get paid off and you start making progress. I don’t have much debt, but my husband and I are working the 7 baby step methods to a T right now. We paid off a small furniture loan (finally!), now we’re focusing on a small credit card, and then we’re going to tackle my car loan. After that, we’ll be debt free, except for our mortgage!

[Lisa Talley]

I think Kayla hit the nail on the head when she said “psychologically.” People are different, so the right approach for one person might not be best for someone else… Maybe the avalanche method works for someone who is motivated by the emotional boost you get from seeing momentum build? But a different type of person, more mathematical or “rational,” might be more motivated by taking the avalanche approach? “Know thyself,” as the Greek philosophers say!

[Cara Reynolds – SUM180 Community Manager]

Great conversation about best ways to tackle debt! I’d like to chime in just to mention SUM180’s approach, which is to tackle the highest-interest debt first, but also to balance this by building a savings cushion simultaneously. The two actions work together to strengthen your financial picture.

[Antoinette Minor – Ambassador]

I think his idea of living without debt is doable but not for most. If most people waited to buy things in cash (house, car, school, etc.) they may literally be waiting so long that they can’t enjoy it or may never obtain it. Income is a huge factor and sometimes you need that debt in order to make more money (business loan, school loan, house – wealth building).

I think either debt pay down method is fine. I like snowball because of instant gratification and the avalanche method may disappoint my need to see instant improvement.

To me it’s all individual and I’m not a fan of grouping people into the same methods and plans. Credit and debt is too specific to the person for that.