Comments on: Debt Snowball Plan http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/ Tips for living frugal while still having a life Sun, 21 Mar 2010 17:03:34 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: codeblue http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-29987 codeblue Sun, 16 Aug 2009 15:33:15 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-29987 I don't know if this method would work for me. I am a person that goes to the checking/savings account a little more than I should. The only way I've saved money is by increasing my 401k plan, changing the amount of taxes to come out of my check each year (so I get more back at tax time) and putting money into my roth as soon as I get paid. (I can withdraw without penalty but there's more hoops to jump through to get it. So far, I kind of forget it's there-which is good) I do a kind of snowball effect where I use all my extra money to pay down the smallest credit card/loan first and then I take that old payment with the extra money and go to the next smallest one. I pay it right at payday because the faster it's out of my grimey hands the better. I hear all the time that you save more money if you pay off your highest interest debt, but I'm a results kinda gal. When I see change happen quicker I'm more proud of myself and more willing to stick with something than to give it up. I do use your envelope system. It works wonders and keeps me in line. I also hide my credit cards at home and put my checkcard in a sealed envelope marked "just for gas". It slows down my impulse urge to buy something I don't have cash for so I can think whether I should get it or not. I've also found that keeping reciepts or writing on the envelope what I've bought helps me reflect on where all the money is going and where my problem areas are (ex: bottled water/soda at gas stations). I may sound pathetic, but hey, ya gotta do what works for you! I don’t know if this method would work for me. I am a person that goes to the checking/savings account a little more than I should. The only way I’ve saved money is by increasing my 401k plan, changing the amount of taxes to come out of my check each year (so I get more back at tax time) and putting money into my roth as soon as I get paid. (I can withdraw without penalty but there’s more hoops to jump through to get it. So far, I kind of forget it’s there-which is good) I do a kind of snowball effect where I use all my extra money to pay down the smallest credit card/loan first and then I take that old payment with the extra money and go to the next smallest one. I pay it right at payday because the faster it’s out of my grimey hands the better. I hear all the time that you save more money if you pay off your highest interest debt, but I’m a results kinda gal. When I see change happen quicker I’m more proud of myself and more willing to stick with something than to give it up. I do use your envelope system. It works wonders and keeps me in line. I also hide my credit cards at home and put my checkcard in a sealed envelope marked “just for gas”. It slows down my impulse urge to buy something I don’t have cash for so I can think whether I should get it or not. I’ve also found that keeping reciepts or writing on the envelope what I’ve bought helps me reflect on where all the money is going and where my problem areas are (ex: bottled water/soda at gas stations). I may sound pathetic, but hey, ya gotta do what works for you!

]]> By: Large Student Loan Debt’s Place In Debt Snowball Plan | Frugal Dad http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-16044 Large Student Loan Debt’s Place In Debt Snowball Plan | Frugal Dad Sat, 17 Jan 2009 11:00:24 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-16044 [...] the last week, two readers emailed in with similar situations. They are beginning to set up their debt snowball plan, and both have large student loans (large, as in excess of $50,000, more than half of their annual [...] [...] the last week, two readers emailed in with similar situations. They are beginning to set up their debt snowball plan, and both have large student loans (large, as in excess of $50,000, more than half of their annual [...]

]]> By: Credit Card Minimum Payments, More or Less | Frugal Dad http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-9411 Credit Card Minimum Payments, More or Less | Frugal Dad Thu, 16 Oct 2008 01:31:46 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-9411 [...] recently read a comment from a new member working their way through baby step two–the dreaded debt snowball.  One of the things the new member was struggling with was resisting the temptation to make more [...] [...] recently read a comment from a new member working their way through baby step two–the dreaded debt snowball.  One of the things the new member was struggling with was resisting the temptation to make more [...]

]]> By: Stacey http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-8587 Stacey Tue, 07 Oct 2008 19:55:02 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-8587 We've started doing this with our mortgage prepayment money. The thought of locking our monthly surplus in equity is a bit scary right now - no chance of getting a HELOC, ect. We're compromising by putting our prepayment money, $300-500 each month, in a 12-month ING CD at 4.5%. It's not a 6.5% mortgage paydown, but I like having that cash around right now. We'll see how our jobs and the credit market look in 12 months... As a side note, we also have a 6-month emergency fund. I'm probably overreacting. But that extra cash sure makes me sleep better at night! We’ve started doing this with our mortgage prepayment money. The thought of locking our monthly surplus in equity is a bit scary right now – no chance of getting a HELOC, ect.

We’re compromising by putting our prepayment money, $300-500 each month, in a 12-month ING CD at 4.5%. It’s not a 6.5% mortgage paydown, but I like having that cash around right now. We’ll see how our jobs and the credit market look in 12 months…

As a side note, we also have a 6-month emergency fund. I’m probably overreacting. But that extra cash sure makes me sleep better at night!

]]> By: Weekly Roundup: Economic Stimulus - Early Payments Edition | Frugal Dad http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-1919 Weekly Roundup: Economic Stimulus - Early Payments Edition | Frugal Dad Mon, 28 Apr 2008 13:58:49 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-1919 [...] Start the “Scared Straight” Debt Snowball Plan [...] [...] Start the “Scared Straight” Debt Snowball Plan [...]

]]> By: How to Survive a Company Layoff | Frugal Dad http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-1274 How to Survive a Company Layoff | Frugal Dad Thu, 10 Apr 2008 12:01:44 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-1274 [...] lucky enough to be notified ahead of time, use this advanced warning to your advantage. Put your financial turnaround on hold and quickly begin stockpiling cash. Here are a few ideas to guide you though this most [...] [...] lucky enough to be notified ahead of time, use this advanced warning to your advantage. Put your financial turnaround on hold and quickly begin stockpiling cash. Here are a few ideas to guide you though this most [...]

]]> By: Frugal Family Activities for a Spring Break Vacation at Home | Frugal Dad http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-882 Frugal Family Activities for a Spring Break Vacation at Home | Frugal Dad Mon, 24 Mar 2008 11:02:56 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-882 [...] miles to put distance between you and the distractions of home. However, if you are trying to get out of debt or build an emergency fund, taking a trip requires associated travel expenses, hotel stays, and [...] [...] miles to put distance between you and the distractions of home. However, if you are trying to get out of debt or build an emergency fund, taking a trip requires associated travel expenses, hotel stays, and [...]

]]> By: Collecting Debt “Snowflakes” in Second Checking Account | Frugal Dad http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-727 Collecting Debt “Snowflakes” in Second Checking Account | Frugal Dad Tue, 18 Mar 2008 12:01:00 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-727 [...] “found” money throughout the month. At the end of the month I write a check to make an extra snowball payment on my debt with the lowest [...] [...] “found” money throughout the month. At the end of the month I write a check to make an extra snowball payment on my debt with the lowest [...]

]]> By: Tips for a Successful Yard Sale | Frugal Dad http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-473 Tips for a Successful Yard Sale | Frugal Dad Wed, 27 Feb 2008 19:28:25 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-473 [...] great way to generate some quick cash to get that emergency fund in place, or to contribute to your debt snowball.  Here are a few yard sale tips our family has implemented over the years to have a successful [...] [...] great way to generate some quick cash to get that emergency fund in place, or to contribute to your debt snowball.  Here are a few yard sale tips our family has implemented over the years to have a successful [...]

]]> By: The Frugal Home Mortgage Calculator http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/comment-page-1/#comment-255 The Frugal Home Mortgage Calculator Fri, 08 Feb 2008 16:56:46 +0000 http://frugaldad.com/2007/12/30/adopting-the-scared-straight-snowball/#comment-255 [...] 28% forces you to either look for a much cheaper home, save up for a larger down payment, or become debt free before buying a home. In either case, you will have more money left over each month to finance your [...] [...] 28% forces you to either look for a much cheaper home, save up for a larger down payment, or become debt free before buying a home. In either case, you will have more money left over each month to finance your [...]

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