DEBT SNOWBALL vs AVALANCHE vs TSUNAMI vs TORNADO | Pay Off Debt Fast | Save Money | 

Just recently subscribed as I enjoyed your van build & tour. Nice to see a young couple being responsible with their money, housing and explaining how credit card debt should be managed & paid off. I've been lucky enough to live within my income and disciplined enough to not incur crazy high credit card interest, but many do fall into that trap. Good advice.

Ooo, the Tornado does sound like a good plan. For the first time in years we are carrying a small debt (we see it as an investment in our new home, but we did have to pay up front) Even now we made sure to look at all our options and to make sure we are getting the best interest rate. All the little bank fees add up, and you're totally right I think, keeping emergency money separate, but paying all that interest on credit card debt is killer. Love the tips!

Love it! Can’t wait for tornado!

Mark Goudy sent me. I'm from the UK, our Dave Ramsey equivalent is a guy called Martin Lewis, who also says don't bother having an emergency fund, just pay down debt. If you have an emergency put it on a credit card and you will have at least 30 days grace to pay the card back. I paid my last two debts off another way. I had a Barclay card debt and a Barclay loan (guess who I banked with). The Barclay card debt was the smallest amount and higher interest than the loan, so snowball or avalanche, the credit card debt should have been paid off first. The credit card debt was £60 minimun payment (a percentage of the balance so it reduces every month) , the loan was £285.10 every month. However, I became ill and phoned my bank and said I would be struggling to make my loan payment because I had been off work. Naturally they were rude and unsympathetic. Despite being told by the hospital to take another two weeks off, I dragged myself back in to work and somehow I made that loan payment. I vowed to pay that loan off early because the montly payment was much bigger than the credit card payment. If I ever got ill again I would be in the same boat struggling to find £285.10, it would be much easier to find £60, £59, £58 etc( the credit card payment). I could buy less food, do a side hustle, sell something on e-bay. Paying off the loan first would also increase my cashflow by £285.10. Anyway I paid the loan off an entire year early, but as it was at the end of the loan period I didn't make much savings on interest. However, in a dramatic financial twist my bank had changed their computer systems during my loan period and had for years miscalculated my interest. Which I could see on my annual statements. I thought it best to pay the loan off completely then query it. In UK law if interest is miscalculated from the point this starts until it is discovered that interest is no longer payable or has to be returned. I therefore got a huge interest refund cheque from my bank, which I used to pay off the credit card, et voila debt-free! My question is, does this method have a weather system named after it? Where regardless of the amount of debt or the interest rate, you pay off the debt with the largest payment first to ease and improve cashflow, and stress. Also, loving your channel finance videos and RVs.

Debt tornado vs sharknado ? Who will win? 🤪

When you say pay the 1000 dollars from the bank account, do you mean the 1000 dollars, baby emergency fund? And if that is the case, can you explain how people can manage for instance a water leak/car repair/replacing some house hold machine without going into more debt? Or is the idea that they DO gain the debt again but your motivational charts will still keep them motivated?

Debt tornado