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Paid off $4,200 in credit cards by switching from the snowball to the avalanche method
I was doing the snowball method for like 8 months and barely made a dent. My highest rate card was at 23% APR with a $2,800 balance. I finally sat down and ran the numbers last month and realized the avalanche method would save me about $340 in interest over the next year. So I switched all extra payments to that high rate card first. Paid it off completely in 6 weeks by picking up extra shifts at my warehouse job. Has anyone else tried both methods and found one clearly works faster for them?
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davidh8810d ago
Wait, does avalanche really save you that much in real life though? I did the numbers on my own cards and the interest difference was only about 50 bucks over six months. Snowball gave me that win feeling every few weeks when I'd knock out a small balance, and that kept me going when I wanted to give up. Plus, if you lose your job or something unexpected happens, having fewer minimum payments from the snowball method can be a lifesaver. I just think the behavioral side of it matters more than people give it credit for.
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