After the economic downturn, Erik and Lalani found themselves spending more than they earned. They knew they had to make a change in the way they handled their money. Now, three years later, Erik and Lalani have paid off most of their debts and have a sense of hope and peace about their finances.
Snowballing your debt may not the most logical choice, but many would argue that it is the best choice. Logic would tell you to pay off the highest interest rate loans first. However, in practice many people find it is easier to pay off the smallest balance first. The administrative burden of carrying the debt, watching it, and remembering to pay on time is eliminated more quickly by paying off the smallest balance first. This also begins to free up your cash flow more quickly with the smaller balance loans.
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