The point of this is to roll what I’m currently paying once a debt has been paid off to the next lowest debt item.  For example, If I have three debts and I pay $150 on each debt with Balance A at $5000, Balance B at $3000 and Balance C at $500 I can eventually tackle Balance A in no time by snowballing my debt.  Here’s the idea, as soon as Balance C is paid for I roll the $150 into Balance B and now I’m paying $300 toward that debt until it’s paid for.  So on and so forth.

This idea gets tricky when you have 8 credit cards with all sorts of different interest rates.  The simple idea is to take the lowest balance.  I would like to challenge myself to take care of the largest interest rate.  The alternative is to consolidate debt.  I’ll attempt this but it sort of defeats the snowballing effect idea.

What is the advantage or disadvantage in totaling your car?  I received a call from my wife this afternoon informing me that she had done just exactly that.  Good news, she alright and we’re covered!  Just when you think your insurance payment is a waste and the Xbox you been looking at for 4months at Best Buy makes more sense to buy – YOU ARE WRONG!

My first piece of financial advise.  Always have a plan B or an emergency fund.