You've probably heard alot about the debt-snowball: pay-off your smallest debt first, then another debt until, after a few years (or decades) all debt is paid.
That may be a good approach.
But what if you started to pay-off debt with the biggest debt first? Or what if you started with the highest interest rate creditor? Or the most-hated creditor?
Snowmen: Large Debts First or Multiple Debts, not just one debt at a time
We once paid off a huge chunk of debt by selling a home. We bought low and sold it for about a $50,000 profit. We were able to pay-off many debts in one day! Had we simply focused on paying small debts and then larger until paying off $50,000 (on an average salary) it would have taken years.
Opposing Snowballs: Hated Creditors and High Interest First?
We also hated paying Lowes. So we decided to pay-off our Lowes credit card although it had the lowest balance. We hated them and hated the high interest rate. The result? We were fired-up after paying them off. We used the momentum to pay-off another annoying creditor.
Some money coaches insist upon a certain method for every family. That is nonsense. Use the method best suited for your family. Follow principles not methods.
The method for paying off debt is irrelevant. Use what works best for your family.
The truth? Pay your debt and live free!