This post comes from J.D. Roth at partner blog Get Rich Slowly.
During the 20 years I carried consumer debt, I made several attempts to change my habits. Every time I decided to lick the debt monster, I would follow the advice in the financial books: I'd arrange my debts in order, listing the one with the highest interest rate first. I'd pay extra on that bill for a couple of months, but then give up in frustration because I didn't seem to be making any progress.
An extra $100 on a $12,000 balance doesn't make a dent.
Eventually I read Dave Ramsey's "The Total Money Makeover." His debt snowball method changed my life. Ramsey writes:
Personal finance is 80% behavior and 20% head knowledge. The Debt Snowball is designed the way it is because we are more concerned about modifying behavior than correct mathematics.... Being a certified nerd, I always used to start with making the math work. I have learned the math does need to work, but sometimes motivation is more important than math. This is one of those times.
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