Snowball Question...
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Snowball Question...
| Wed, 01-12-2005 - 12:10pm |
I downloaded the snowball program awhile ago and I have a question. I have 3 credit cards. 2 large ones and one smaller(though large in amount). I did the snowball program to see what is the best and it is coming out that my second largest card should be the first one paid off. Though the larges one has the highest interest.
Does that make sense?? Tell me how to make a snowflake?? I need a flurry here!

Hi there! I'd say to pick one and got for it!
You know you best, and would know if you'd get more satisfaction to get the lowest balance or the highest interest one gone first. I tend to go with the lowest balance just for the satisfaction of getting it paid off and GONE! Even though my higher interest ones are still there, I know that when I roll that snowball, well, their time is coming anyhow!
As far as flaking goes, it's anything over and above what you pay as a minimum payment. If all you can do is round up the payment from $48.50 to $50, then you just flaked $1.50. Doesn't seem like alot? Yup, not at first. But when the snowball starts rolling, and you start finding extra money, it's amazing what happens!
You may have to get creative to get that flurry started, but I have no doubt that when you do start, the flakes will start flying!
Good luck,
Lisa
Yes, you have to get creative to find some snowflakes....I just found a rebate form that I haven't sent in yet for 3 whole dollars, and when I get those 3 dollars, I'll snowflake them to one of the debts.
I am trying to find snowflakes by changing some behaviours and being more mindful of my cash flow. A few bucks here and there do add up.....a million dollars is a lot of pennies!!!!
Littlesbigs
All my best,
Danni
For what it's worth, here is my opinion.
If you have two debts, one that is $300 and one that is $5,000, it's best to pay the lower balance first. You'll get it paid off fast (freeing up the payment you were making to that card fast) and you'll get psychological boost from having one debt out of the way.
If you have two credit cards and one is $4,000 and one is $5,000, it's best to pay the higher interest rate one first. You wouldn't pay the lower balance one off that much faster than the higher balance one since the balances aren't that far apart. If one has an interest rate of 20% and one has a rate of 12%, you are paying a ton more for the higher interest card so paying it down will save you a lot of $$$.