Genepunk Podcast and Publishing

  Debt Reduction Snowball Method What is the Snowball Method The Debt Reduction Snowball Method is a  strategic plan to reduce or pay off their debt that follows a simple emotional process. The Snowball Method directs the consumer to pay down their consumer debt using the smallest balance first. For example, using this method a consumer would review his/her debt accounts and list them in the order he or she wants to pay them off. The lowest debt would be first (#1), then the second (#2) and so on, with the highest debt being the last on the list. In creating this chronological pay-off list, the consumer would not take into consideration the interest rate assigned to the debt.  Following this manner allows the consumer to more quickly feel a sense of accomplishment (a win!) during their debt reduction process. Smaller debts are paid off and emotionally the consumer feels a sense of momentum building. This feeling increases the chances that the consumer will stick with the ...

 Debt Reduction Avalanche Method Debt Reduction Avalanche Method What is the Avalanche Method The Debt Reduction Avalanche Method is a strategic plan to reduce or pay off debt that follows a strict financial process. The Avalanche Method directs you to pay down your consumer debt with the highest interest rate first.  For example, using this method a consumer would review his/her debt accounts according to the interest rate. He’d rate the debt with the highest interest rate as #1, the second-highest as #2, and so on. In creating this descending interest rate list, you would not consider the amount owed on each account, but rather the interest rate assigned to the debt.  Following this procedure allows you to structure a payment plan that targets and greatly reduces the amount of interest paid over the amount of each loan or debt. Going into this you know that you can reduce the amount of interest paid by as much as 50% over the life of your debt elimination plan. This is ...