Question

I know the snowball method is smallest balance to largest, but has anyone gone out of order? My smallest balance is $6, 300ish with a $42. 00 minimum payment (student loan). Our next smallest is $7, 100 vehicle loan with a $191. 56 monthly payment. I am very tempted to pay my snowball toward the pickup. If interest rates matter in your opinion, the student loan is 5. 25%, the truck is 4. 75% Thoughts?  

Answer 1

(I think) is what TBM mentioned one one of her stories once.  
https://undebt.it/debt-snowball-cal...r.php

Comments

@personification8156 I LOVE, LOVE UNDEBT. IT

---

@personification8156 oooh! I like this!  

Answer 2

I would pay the one that opens up the most money monthly

Answer 3

Personally, I’m a fan of doing what keeps you motivated, even if it isn’t always the smartest interest wise. Saving on interest doesn’t help if you poop out early.  

Answer 4

Personally, I think the difference in interest rates and the amount owed in negligible. If you feel that paying off the vehicle first would help you with your goals more then that is how I would focus. Everyone who strictly follow avalanche or snowball method would say to start with the student loan so at least there is some agreement in both camps.  

Answer 5

I do smallest to largest except where it doesn’t make sense. Saying that, I once spent a couple hours estimating our debt payoff with interest from small to large then did it from interest and payment using calculations to see what would be smarter to pay off first. It literally only save 2 mo estimating a 3 year journey. So it may not be all that great anyways.  

Answer 6

The balance and the interest are pretty much the same. So I would snowball the 7, 100 first to free up the money.  

Answer 7

Personally I like the idea of paying off the one that I can make Y times the minimum payment. So being able to pay 2 to 3 times what the minimum payment is.  

Answer 8

The snowball method is just one way and it’s just a guide. Do what works for you. For example you might want to pay one sooner if it’s more likely to go to collections or another reason other than amount and interest rate.  

Answer 9

I would also put my money towards the truck. When u get done paying that off you have a huge amount to snowball the remaining balance on the student loan.  

Comments

@fro3239 this was my thought

Answer 10

I went with what freed up the most $ per month first. It's not always the largest interest or largest amount owed that does that.  

Answer 11

There's no wrong way to pay off debt. choose whatever method that works for YOU; hell invent a method

Comments

@antalkali you’re right! I have been trying to go by the book but we’re having trouble staying motivated

---

@luigi your debt, your money PAY YOUR WAY!  

Answer 12

I’m currently going out of order. 3 of my cc debt are interest free so I’m paying off the highest because of the interest.  

Answer 13

I have. I paid off both cell phones for $112. 94 my 401K 2nd for $1, 389. 57 then mat firm for $399 last is the car for $3, 483

Answer 14

That's not all too big of a difference in interest. For me, I would do the car loan then roll the payments I was making into the other debt to knock it out super quick.  

Answer 15

Car to get more to put to next sooner

Answer 16

I would do the truck first because if you are in an accident and total it out you don't want the potential to be owing on a car you don't have anymore. Assuming you don't have gap insurance. Second reason being, that it has a higher monthly payment so when that is gone the student loan will be flying with a bigger snowball

Answer 17

Interest rate speaking, paying off the student loan would save you the most! However they are fairly close in balance and rate so the difference probably wouldn’t be more than a few hundred dollars. If it gives you more peace of mind to pay off the truck first because it’s a higher payment then go for it! I’m personally paying off our car that only has 2. 5% because it has the lowest balance. Sometimes I want to kick myself for doing it but when I did the math, the overall difference between snowball and avalanche was only a few hundred over the next 5 years so I figured snowball because I can have that $420 car payment paid off this year instead of working on the higher interest car and needing a couple years.  

Answer 18

I have gone out of order some. We are paying off everything but student loans and then the student loans.  

Answer 19

We are going out of order because our 2nd debt has a minimum payment of $400 versus our smallest which has a minimum of $40.  

Answer 20

We are going out of order too. Our smallest is a credit card at $850, then my car is $9800. We have a loan for $7600 but the interest rate is 11%. My car is almost paid off, then I will throw all extra payments at the loan.  

Answer 21

I like the avalanche method, either way it put the one I want to pay off first at the top

Answer 22

I usually say avalanche, BUT the interest rates aren’t that different and if you have a serious hardship, you can go on income based repayment plan so I am tempted to say pay off the truck. However. how quickly do you pay off your student loan with 42 bucks a month. I have a feeling like you are just paying interest there (in income based repayment plan already) and it will never be paid off. just make sure you have a schedule to when pay off is because a lot of people end up paying interest for YEARS and then end up realizing way late.  

Answer 23

I'd pay towards the car bc the monthly payment is higher. Get rid of that payment.  

Answer 24

We do the snowball method, however, with your balances being relatively close I probably would attack the truck before the loan so that you would free up more money after paying it off.  

Answer 25

I am doing mine slightly out of order. My medical bills do not have interest accruing but my credit card will in July so with my refund I am paying off the credit card so I don’t end up owing more. I’ll be able to quickly pay off the medical this year after that and then my two vehicles are after that. Credit card is $2, 300 and my hospital bills I owe $900 and $1, 000 both at $50/ month. Single income house so the credit card needs to be paid.  

Answer 26

We follow the snowball method with one exception. We could have paid off one of my student loans and have no choice where those minimum payments were going after paying it off until we reapplied for income based repayment 8 months later or pay off my husband's car for about $2000 more (which actually had a lower interest rate) and be able to chose where we put the extra $250/mo. We chose to pay off the car so we would have a say in where that money was going

Answer 27

I'm with you. I would do the truck first too. Once that's paid off, you'll be able to aggressively attack the student loan.