Finances: Snowball vs. Avalanche Debt Repayment Methods
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- Опубліковано 23 лис 2018
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Feel free to ask questions in the comments and I'll answer them in future videos!
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Article 1: www.moneyunder30.com/snowball...
Article 2: studentloanhero.com/featured/...
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Outro Music By: / myketaylor11 - Навчання та стиль
Thanks Dave Ramsey! We had a personal finance class in high school which was pretty much just watching Dave Ramsey videos every day and this is pretty much all I remember from it, lol.
UnfortunateFreakNo1 Haha that’s funny! I’ve never seen any Dave Ramsey stuff but people definitely talk about him a lot.
Another great topic and presentation Kym.
brat4300 Thank you!
Great video! Thanks for the tip!
David Moore Thank you!
I love watching your videos. You are very refreshingly intelligent. You just make so much sense!
Jamz Jamz Thank you, you’re so kind!
Awesome job.
FLJAMESFL Thank you!
Nice! I’m currently using the snowball method once I get three accounts paid off im definitely switching to avalanche method. Thank you for the links info btw 😊👍🏻👏🏼
GEOKI Sounds like a great plan! Happy to help! :)
Fascinating stuff, thank you!
I don't have any proper debt at the moment (I mean I owe a lot to student finance, but here it doesn't affect my credit score and there is essentially no incentive to pay it back), but I know I will have to start taking out loans for stuff eventually, and when I do these strategies will greatly help. Yes please, would love to hear more finance stuff!
WaistHighView I’m consistently jealous of your system. A nice thing about student loans here is that they positively affect your credit as long as you pay them on time so that’s nice!
And, awesome, I’ve got so many more things to talk about! Haha
Yesss more debt and financial videos!! :)
Renee Moran I really should do that!! I love talking about finances!
i really appreciated seeing this. i am still drowning in debt, but more hopeful
once your debt free it will feel great.
I believe in you!! I’ll keep making videos like this and you keep throwing whatever extra at your debt that you can!
Numbers!!! You are speaking my language now. I'm not sure what method I used, but if the min was $300/month I was paying $1500/month. You don't want long term debt in your thirties. I've been debt free since 2016. Its a great feeling.
People don't pay just the minimum!
TSBilliards86 Yeah, I’m down to only 2 forms of debt plus a mortgage I’m about to add on which is TECHNICALLY debt, but it’s very much a different form of debt in my opinion. Since I was saving for a down payment, I have only been doing about 20% extra but as soon as I close on my house and pay my taxes in January, it’s back to intensely throwing everything I’ve got at my loans!
Kym, I left a comment for you on my page under the Rage Against the Machine comment on this Post.
UA-cam wouldn't let me put it on your page.
I like your ideas.
@@James-en4cx The link to the post wouldn't post, either. It's the Cypress Hill Rock Superstar Post on my Facebook. JamesJams76 (It rhymed. It's about music.)
You are such a Goddess at teaching. I love that you did this. You should definitely do more.
Michael Angelica Thanks!
@@munchkym Thank you madam..
I definitely missed your content that was more applicable to my everyday. As ridesharing isn’t really for me, this is the kind of video I’d love to see more of. I’ve been trying to pay off debts and save with my fiancé to get a house so if you have any advice on how to save more on a real budget I’d love to hear it.
lightandarklove Thank you! I have a few tips! One is to pay all your bills until the next pay period as soon as you get paid and then decide how much you will keep in your account and send the rest to savings. This is what I do and that way I always know exactly how much I have and I have a feeling of having less than I do so I spend more frugally!
You are a rock star!!
Ambrosius13 Thank you!
Love the hair! :)
Paul Juarez Thanks!
When I was young and had a lot of CC debt, I was able to do balance transfers to a lower interest card and then avalanche that. Not sure what you’d call that, but it worked great for me. Later I looked at paying off my student loan early, but by that time I was mainly into the principal, so even though the interest rate was high, it didn’t make sense to pay it off early. Enjoy this kind of video. Maybe you could look at refinancing and debt consolidation as well. Cheers!
Ziggy Stardog Yes, absolutely! I’m so glad that balance transferring worked for you, it can be super helpful! Refinancing is complicated and definitely something I would like to talk about, for sure!
Yes... Please! I just recently opened up a checking account with a “fed credit union” I’m hoping that I made the wiser choose. I should know more about money but honestly I don’t know as much as I should or I feel rather uneducated with it. But I do try and study up on the subject best possible. Any of your advice would be greatly appreciated! TFDiet has been a good and still is but yeah I just want to spend my money wisely and not carelessly.
remedywithin That’s wonderful! And I know exactly how you feel, I only recently learned more about finances because I was sick of feeling like my money was not in my control. I’ll keep making videos, feel free to email me with questions!
Hey Kym! How do you make it so you have your subtitles automatically play for your viewers? I'm trying to set that up but can't figure out how!
The Rideshare Hub I’m not sure about automatically playing, I think that might be based on the viewer’s personal settings? I do create my own subtitles, though.
Oh i see! Thanks for responding! I think i saw somewhere that you use subtitles on your videos and I thought that was cool. Is that for better longer watch retention?
The Rideshare Hub A lot of drivers are d/Deaf and/or English is not their first language so I want my videos accessible to them. I also personally watch a lot of videos without sound so I appreciate accurate captioning. Additionally, I know I talk too fast for some people so that can be hard.
Awesome! I started doing captions too. Thanks!
The Rideshare Hub I’m glad!
I agree with you kym. Also, it is important to be discipline with your money. Just spend in what you need. Also pile a debt over debt is not good. Have good weekend kym!.
elvis navarro Discipline is important, a plan is so important!
I went to electronics school back in the late 70's and I never paid off my student loan I think it was something like $5,000 dollars. I paid around half of it off and I stopped paying it in the late 80's so I have no ideal if it's even on my credit rating.
You can check your credit score to find out if it’s there. That’s also amazing that it was only $5,000, my public education was so much more haha
When I pick people up I notice they say hi and immediately try to open the door to get in. Should I lock the doors so I can get a chance to ask them what their name is?
Timothy Kim Haha this is an odd video for this comment :P
A lot of drivers will do this, yes. Doing it for busy pickups is a good idea as I know a driver who was assaulted because a man who was not his passenger got in and he refused to drive him.
Love you going over finances! Great information here, especially for people with debt! I don't believe in credit cards!
The Rideshare Hub Thank you! Credit cards are really valuable for building credit as long as you use them properly and don’t get out of control.
Sure! Some may think that, but I just don't believe in borrowing money in any circumstance. That goes for car, school, credit cards, etc. I think you should only buy what you can afford and not having payments allows me to have much more financial freedom.
The Rideshare Hub Ahhh, I see. That’s a difficult way to live. So you don’t ever plan on getting a mortgage?
Mortgages are fine! As long as you buy with a 15-20% down payment, a 15 year fixed, and the payment is 1/4th of your income. That's my rule of thumb! Although I do plan on saving to pay for my first house in cash. I know a lot of people like going into debt and having payments, that's just not the route I plan on going financially.
The Rideshare Hub Makes sense! As long as you have good enough credit to get a mortgage, but I’m sure you’re keeping an eye on that!
This is a really good, quick explanation of the differences between both methods, and think you should definitely do more of these videos. There is a third method that I personally used when paying off my debts (I'm sure there's a name for it, but just don't know of it right now). My basic strategy was instead of making extra payments monthly, to put that extra money in an investment/savings account and try to make it grow as much as possible. For me, it helped in 3 ways:
1) I always have access to the extra payments should I need it in an emergency situation, as compared to when the extra payment(s) are made to a debt, it’s gone.
2) There will be some compound interest occurring on that extra money, depending on the amount of time you put it in. In my case it was about 4-5 years.
3) Provides more options when the remaining balance of the debt equals the investment/savings account total.
Just like you alluded to in your video, every situation is different, and you need to run the numbers to see what works best for you. However, for me, either way you go with this method, you can’t lose. You will either have an account with a good chunk of change in it, or all of your debts fully paid off.
Danny Sirico Thank you! And, yeah, that makes sense except that most savings accounts don’t earn as much as you’re paying in interest so it does make sense to send that extra to your debt. I recommend having a savings buffer of whatever you’re comfortable with (many recommend 3 months living expenses) and then throwing all your extra at debt once you do! But, definitely, it’s all personal and the biggest thing is that you figure out what will be most encouraging for you!
Great video. I would suggest a video about student loans. To be honest, I thought that 30k debt on student loans was high (even though I have heard worst scenarios). How do people get their student loans debt so high? I went to college here, and my student loans debt was about 9k.
Thank you! Yes, I really should! My student loans were about $45,000 but one of the big reasons they are so high is because of interest. Many people accrue more interest monthly than they are paying. But also the cost of school has gone way up.
In Australia hospital is free because it's included in our Medicare tax.
alyy j Yeah, we know, Americans are very jealous of everywhere else and their better healthcare systems.
Maybe Democrats are jealous, Republicans are not. That money comes from somewhere.
So what’s he incentive of becoming a doctor in Australia if you are paid by the government? How are the wait times by the way? Must be rather long when any idiot can walk into an er with a sore thumb.
@@jadonharper1493 we have meedical clinics for small things like that. Big time emergency go to hospital.
Most of us pay bulk bill. When we go to see doc or hospital it's already paid for ...etc... through a levy we pay in our taxes right through the year
Kym, anyone's that's ever been targeted, and all their families have choke to 2 minutes orders on 12/20. Read my page for more info about it.
This is great! I actually understood this. Now can you explain Fidelity investing to me? XD
Gil Aly Allen Haha I’ll add it to my list and maybe I will!
I really think that avalanche would be better for me simply because having more debt accounts stresses me and force me into a "i need to save mode" even if my 10 open accounts are only a few hundreds remaining.
tjoloi That totally makes sense! I play a similar mind game where I put a lot of my money into savings so then since my checking is “low,” I spend less cause I feel like I have no money
@@munchkym Haha, I do exactly the same. But I tend to have is sparsed even more. Like I have a substancial amount in an account from another bank than my main one so I just never see it and tend to forget about it sometimes.
Ugh I hate my debt. If you could tell me how to figure out how to afford a house when I'm saddled with huge debt that would also help. Lottery tickets haven't solved my problem....yet
James Enter I actually am currently in the closing process on a house while having thousands in debt so... I possibly could help you! Feel free to shoot me an email if you want to get into specifics. ☺️
@@munchkym my problem is I live in an expensive state with a lot (6 figures) of debt. Luckily I qualify for loan forgiveness but it's about 5 years away. I'm just biding my time until it *poof* goes away. Lower expectations for housing would probably help. spending less=also good. I'm glad it's just the 1 big #. You must be in finance or something. I wouldnt have guessed it.
James Enter Ahh, yes, that makes sense. Expensive living costs can really cause issues!
I’m not in finance, no, I just have done a lot of research and figured a lot of things out.
Buying a house with a lot of debt is not impossible as long as your payments are manageable, but I definitely understand wanting to wait until that 5 years is up.
@@munchkym I might not wait but I need to save. For a starter home (not a trailer) your looking at 300k where I am. Nice houses are about 400-500k. I think I can get some reasonable "sweetheart" loans because I'm an md but I haven't looked into it. I live within my means but I am not good with money
James Enter Well, hit me up in my email if you’d like to join my financial group on facebook, I think it may be beneficial to you. We talk about lots of different areas of budgeting, credit, saving, ect!
In Aus there's a book/cult following called the barefoot investor. Changed my life the way I look at finances and having no debt. I'm considering becoming a driver for the extra cash for a house.
Andrew J Sounds great! And I actually JUST bought a house myself, good luck!!
Take a homebuyers class!! Even if you think you know what you’re doing, mine was so so helpful!
Got me feeling almost excited to pay back my student loans! Almost.
thatniftykid YES GOOD. That is what you want! Make finances your hobby!
Hey do you use a mileage tracker?
I do! Everlance!
Do you drive full time? Can you make a living full time driving?
Dan bitty I do not. While some people can, I personally don’t feel it is lucrative enough for that to be what I want to do. It also definitely depends on your city, though.
My painful thing is not going back to using credit when I don't have cash. :( It's all my fault, but I've racked up some serious credit card debt and much of it is 25% APR. >_< And now I'm hoping to get an entry-level IT job. Lyft driving, even in Chicagoland, is not helping even remotely. Ugh. Hope you've been able to get away from driving and onto better jobs, too!
phoenix7289 Yeah, I totally understand! The credit can be very tempting if you think about it like your own money, but gotta remember that it isn’t.
I’m still driving, but it was never my primary job. Driving in additional to other jobs can help you really focus your debt repayments! Good luck, I hope you get the job!
I live next to you, thats actually my grey house. I always wounder what you are doing out in your car. Now I know.
ddemier ddemier ^ small world 🤣😂
I don’t live there...
What did the Uber driver say to the lonely man walking down the street? “Hey buddy, need a Lyft?”
Is your car owned, financed, or leased?
Financed! Not too much left to pay.
Are the earnings from Uber helping pay down the car haha?
Monica Lewinsky They do!
btw love the hair cut and I don't think that some of these people in this comment section get personal expression. +1.
TheOnlyVie Haha thanks!
Yus
TheOnlyVie Yas
I have to say there's more than "avalanche" and "snowball." But before I go on with what I'll say regarding this...
You say "congratulations" on keeping college debt at $20k. My entire college bill, including interest, at graduation, was about $11k.
Some people will usually pay the minimum due to income but occasionally throw in a higher payment, depending on what the payment is for, due to income. Months with a little more income can result in higher payments, but said months with higher income are only occasional. Some months certain other expenses may not need to be paid or have been paid off which means more money that can go toward something else.
However, if I'm ever able to register/launch my planned LLC/ORG... any member will be able to save a LOT on their everyday shopping and bills. That is, depending on their 'member credit percentage.' With a very low monthly membership cost, members would likely be able to pay off their monthly bills (and taxes at tax time) and still have money left over each month ... and not 'need' a job. However, although an income will be required to retain more than a 0% 'member credit percentage,' there will be other factors in which dropping to 0% could happen. It's said that those that drive for Uber/Lyft should also have a job, which could be true with other self~employment opportunities as well. A member of my company membership website could easily drive for Uber/Lyft and not have a job, but it'll be suggested that they be self~employed with at least one other (acceptable) source of self~employment.
Brian Joslyn How long ago did you graduate?
Irrelevant. But I know I could be your father. But again, age is irrelevant to knowledge. It's quite possible there are teens and younger that know something you don't. "Respect your elders" seems relevant here. I'll say this... I didn't take my college course right out of high school. I was probably older than you are now when I started my course.
Brian Joslyn It’s definitely relevant because the world has changed a lot since then. Advice that was good for you is not necessarily good for us.
So now you're claiming my college course involved credit/financial and are combining my mention of an $11k college bill to everything else I said. Not true. Everything else I said, regarding paying bills, is still relevant today. Everything I said in my initial comment starting at "however" is in regards to MY planned business and is quite relevant. It's obvious I'm not quite as old as you think I am.
Dude, your answer doesn’t help anyone from this generation. Maybe you should go back to school and take an updated finance class so you can properly “help” people who didn’t ask for it 💁🏼♀️
So smart and so so cute
BOLTS Haha thanks
Enters THE UBER to help wipe out those annoying dept... btw nice pearls Coco Chanel.. ;0)
kreator861 201 Side jobs can do wonders for eliminating debt! And thanks, they were like $3 haha
fucknig LOLOLOL @0:53
Wait, that's the end of the video, what's funny? Haha
Oh, I meant 0:53
I'll correct
what happened to the intro with the munchkyyyyyyyyyym???
Rapture2930 I decided to go for something shorter.
Heyyy gorgeous!
Runnin' Wild with Milwaukee Buck! oh uh hi haha
@@munchkym .... Do you have email? I'm thinking 🧑+👩 (you and me should talk) Like for real... 🙏
Runnin' Wild with Milwaukee Buck! You’re welcome to email but if you’re trying to woo me, I’m not really interested...
@@munchkym I'd like you to hear why you should be.... 🙏
Max out all credit now, get supplies. The economy is about to collapse!
Guyz Truth That is terrible advice haha
I liked the long hair more
NecumNaTo Tbh, I don’t really care.
So,why go into debt to,get an education?
gsheac That’s a personal decision made by each person and we shouldn’t judge people for how they chose to move forward.
I like eggs!!
lostintime86 Okay
lostintime86 Is that from the Amanda show?
I'll donate a dollar if you remove that damn rivet out of your lip, no, 2 dollars, but that's it. 2 dollars to remove the rivet.
CluelessBeeKeeping It cost me $80 to get it and I clearly like it so hard pass. Donate your $2 to charity.
@@munchkym Dang, I thought you were good with money. Oh well. Next one, use a hammer and nail or a cordless drill.
CluelessBeeKeeping Gross.
@@munchkym Not any grosser than that rivet in yer nose.
Debt repayment? lmao ! fuck that shit , file for bankruptcy one and done easy
Wow good luck in life....
@@munchkym no luck needed , I own 2 rentals in Tampa and currently flipping this one in Pensacola , all paid in cash... made my money in this life by working for myself not someone else.... soooooo .....
FYI .. something to add.. by law credit card companies by law have to include the breakdown of your payments to show how long it would take to pay off the card if you only paid the minimum and didn't add any additional debt to the card. Oh and can I get your interest rate on your card? Most all of them these days are in the 20+% range. I would love to have a card at 9%. .. Oh and don't use your card on Black Friday because that 30% off will get you if you don't pay your card off at the end of the month as you end up paying it to the credit card company instead in interest. :) That's a lot of Uber and Lyft rides/hours to pay that Black Friday purchase off. :)
Jay A I have my credit card through a credit union and my credit is really good so I’m quite lucky to have a low interest rate, but I don’t know that this is my interest rate, I just picked example numbers.
@@BrianJoslyn My point was that if you're in credit debt at all that youre not paying off at the end of every month then it's not worth putting more on your card because it's 30% off on a sale. You'll end up paying more than that back in the long run depending on how dilligent you are at payments. You're still financing 70% of that purchase. If you truly want to save on a sale then pay cash not put it on a card that you're already not paying off every month. As she said.. If you're only paying the minimums it will take you a long time to pay it off and any savings is pretty much gone in interest payments.
Brian Joslyn I don’t know my interest rate because my credit card has been at a 0 balance for more than a year so it’s not relevant. So I don’t have a monthly bill. And even when I did, I opted out of receiving an actual bill cause mail is terrible. I have it in my budget document, but I don’t know it offhand. It’s less than 10%.
Brian Joslyn That’s actually really bad advice. 15% of your credit score is determined by length of credit account so unless you have a lot of accounts, if they don’t have annual fees, you should keep them open. I’ll be making a video of what comprises credit scores in the future.
Brian Joslyn I’ve spoken to my financial institution to ensure it will not close. It will not close. I am “using” it by it existing as a line of credit which helps my credit score. I’m never closing this card because doing so would hurt my credit score.
What happened to the hair?! What the hell!!
Sergio Omar Obviously I cut it haha
Leave her alone.
munchkym why?! I mean don't get me wrong you still look absolutely stunning but your hair was your trademark I feel as if my feelings aren't being taking into consideration I don't know if what we got going is going to last ;)
Dude she cut it months ago. She's had plenty of photos on insta. It looks classy and is probably waaayyyy easier to manage. Turned out great
Sergio Omar The thing to consider Sergio is... why do you think your feelings should be taken into consideration when it comes to my hair? I cut it because I absolutely hate managing long hair.
Many people who watch my videos feel very entitled to my body (look at all the comments telling me to get rid of the lip ring, telling me I shouldn’t have cut my hair, pointing out blemishes on my face, ect) and it’s honestly so weird. I cut my hair because I hate having long hair. That’s it. Not to mention, I guarantee that 95% of the people telling me I shouldn’t have cut my hair have never had long hair and have no idea what it’s like. Ask them why they don’t grow out their hair and they will say “because I don’t like it.” Shocking! Me either.
My body is not a trademark, I am not a symbol and I am not for sale, it simply is my body.
Now, don’t think that this is all a personal attack in response to your comment. (For one thing, it can’t be personal because I don’t know you.) Your comment on its face isn’t malicious. But getting comments nonstop telling me how I should handle my own body when I literally didn’t ask? You’d be frustrated as hell. And you really should take a look and ask yourself “why do I feel she should take my feelings into consideration when she doesn’t know me and clearly made the decision she wanted to make?”
Are you single? I’m in Love!
Paul Phillips Haha I don’t get into my personal life on UA-cam comments.
Yawn 😴😴😴 on to videos of squirrels water skiing
Philly Repo K
munchkym sorry, this one was really boring and kind of random. I like you, you have a really likable personality. I think you should do reviews on cool new products, that would fit your shorter videos you trend to do and you could start by reviewing cool stuff that Uber drivers might want to use. Just a suggestion. Btw, I took my first Uber last week, it was funny, I tipped him 5 bucks and he tried to give me change. I guess they don't get tipped much.
Philly Repo It’s not “random” for me cause I’ve been super into finance stuff lately, but I’ve always said that my channel will not be solely uber/lyft. And finances apply to everyone!
I may do product reviews, we’ll see. It’s less my style, though.
Not needing those is better... ;)
JrayLeano Leano Of course not having debt is great, but student loans mean many of us start our lives with debt. And debt can be helpful as it helps build credit history and ensure ability to receive discounts and get other types of debt such as mortgages!
Thanks for the reply...
U cut ur hair uber lady!...you look like one of the famous people on t.v justin bieber... j/p smile good day beautiful lolz...
JrayLeano Leano Haha thanks! I do feel like a bit of a rockstar with this hair. ☺️