DR 020: The Debt Snowball

This is the thirteenth day in our 31-Day Money Challenge. Over 31 days we’ll publish 31 podcasts, each designed to help you move closer to financial freedom. Yesterday we started a 3-Day series on how to get out of debt. In today’s podcast, we look at the debt snowball.

Sponsors: The 31-Day Money Podcast is sponsored by Betterment and Personal Capital. Betterment and Personal Capital are two tools I use to make investing easier, less expensive, and more effective.

Before we get to today’s topics, I first want to thank you. While I just started this podcast two months ago, it’s already climbed the charts and now ranks 12th in the investing podcast category:

Top Investing Podcasts

Thank you! It’s truly an honor to be such great company.

Topics Covered

  • What is a debt snowball
  • How long does it take to pay off a credit card making just the minimum payment
  • How much time and money can you save using the debt snowball with credit card debt
  • How does paying extra each month help you get out of debt faster and for less
  • Which debt should you pay toward first
  • What is the debt avalanche

Resources

Listener Comment

(Steve): The podcast with MMM was just awesome. I left a comment on your website, but that just lit a fire under my ***. It’s the only podcast I have ever listened to two times in a row.

Suggestion on credit cards – I also charge everything I possibly can on cards, and pay them off 100% of course. A few additions to consider (the Money magazine had a nice discussion on this too):

Things like the Target Red Card is an automatic 5% or Amazon 3% if you happen to shop there.

Only up to DR15, so might be something in DR16, but I love grocery/department store loyalty cards. I shop a lot at Target, so I use their Cartwheel app to add additional discounts to items I am going to purchase anyway, and I just hand them my phone and they scan the bar code it generates. And I shop a fair bit at Vons (grocery store) and I have signed up for their loyalty card which gives discounts. I can go one step further and use their Just For U app and select additional discounts on scores of additional items which are automatically added to my loyalty card – so no coupons to deal with. I can easily save 20% using these two methods on items I was already going to purchase – and I am sure I could save more if I considered replacing items/brands with substitute options on sale.

OK – kids almost home. Thanks for everything you are doing! I think the interview with MMM was fantastic and your podcasts are extremely well put together and excellent listening.

News

We’ll look at an article in the WSJ by Mark Hulbert: Beyond Bonds: A Guide to Alternative Income Sources

Day 14: Which way is up?

Published or Updated: July 29, 2014
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Speak Your Mind

*