The Best Way to Pay Off Debt

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I have read a lot of articles about this and a lot of critics say "If debtor used logic, he would have never gotten into debt in the first place", but I only have loans on rental properties that produce income. I am going to use the most "logical" method to pay my debt off fastest and it is obviously not the snowball method.

MBF of SC 10:14AM October 27, 2010

As the Bible says you are a slave to holds your debt. To all those who say they do what they want and live "free", r-i-g-h-t. How is freedom when you have to work to free yourself from what you bound yourself with.

G.K. of TX 10:11PM August 14, 2010

If debtor used logic, he would have never gotten into debt in the first place. The behavior must be modified. This is why Ramsey's debts snowball works. The key then is to get out of debt and STAY out of debt.

Fred of FL 8:23AM August 14, 2010

I think the pay off the high interest idea makes the most sense to me
But, and this is a huge but - what if the high interest debt was ran up by your wife and if you pay if off, she'll just start over again, 100-200 or so at a time, but very innocently
So, if you pay off her debt, she just restarts and then you have to do it again in a year.
This is my concern, that if my wife can't be stopped from spending, how can you ever get out of debt
Some will say just cut her off, don't let her spend - right, like that will happen

GaryD of IN 9:21PM August 13, 2010

I think you reinforce the author's point. He thinks there is merit to the so-called "Debt Snowball," but demonstrates a different ordering is preferable. Getting into debt on an emotional basis is no excuse for getting out of it the same way. What Dave Ramsey espouses is good, as it leads to the goal of getting out of debt, but here the author simply points out the precise method used is not optimal. John Cummuta, by the way, also uses this kind of principle.
I also don't think the more efficient approach is so much more so than Dave ramsey's as to cause burn-out.

James C of CT 8:17AM August 13, 2010

My husband and I have read Financial Peace by Dave Ramsey and decided to use our own modified debt snowball method of paying the highest interest first and then moving down the line. It just didn't sit well with us to do it in order of smallest to largest and let high interest debt sit. It is going so much faster than I expected!!! I highly recommend doing it that way.

Melissa of GA 8:13AM August 13, 2010

It makes logical sense to pay off the highest interest rate debt first. The whole theory behind what Dave advocates (and you referenced it in the story) is getting into debt was not logical it was emotional. So getting out of debt for most people will be the same way. I quick win, paying off the smallest debt, is the best way to get people emotionally engaged. Paying of $10,000 in debt over 2 years might make the most logical sense, but 90% of the people will get burned out by never seeing success and stop the program.

James of TX 11:14AM July 28, 2010