At www.daveramsey.com, Dave Ramsey has listed seven steps towards getting out of debt. The second step is called the snowball approach to quickly and aggressively attack debt. Do you like this approach? Have you personally had any success?
This approach is also known as Debt Stacking or a Fast Pay Plan. There is one thing for sure. If you are in debt, something you have been doing is not right and you need to change that. The sooner the better. If you have any other tips, please share as people in America are burdened with debt.
According to useconomy.about.com, in 2012, "Revolving credit card debt dropped to $862.3 billion, or $7,246 per household. This is down substantially from the record $1 trillion owed in 2008."
The snowball approach allows one to continue the same payments and drastically reduce the amount of interest paid. The goal is to become completely debt free. In general, if you want to be debt free and have retirement savings, you should try to cap your spending, even as you get raises or have debts paid off.
For more on spending habits, check out this earlier post.
This post was reposted from http://finlit.biz/debt/do-you-like-dave-ramseys-snowball-approach/, originally written on January 22nd, 2013.
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