I really like the snowball debt repayment method, I think the pychological benefits of this method are what really make it work. By paying off a small bill quickly you get positive re-inforcement and more free cash flow. Then by using the saved money to pay the next small bill in a short time you get more positive re-inforcement.

Some commenters such as Amy do not agree with the snowball method because you are not paying off the most expensive debt first, but the point is to start and paying off the smallest amount fast and this shows you that paying off debt is possible.

Congratulations. I did miss the radio show scream of joy, but you made up for it by including much more depth and detail than Dave has time for on the air.

I’m glad to see you’re making plans to keep up the momentum. Much as I like DR’s show, sometimes I feel he short changes what should happen post-debt. After his bankruptcy he went on to build businesses and become wealthy, so it’d be nice to hold that vision out to others.

Debt-free should be the beginning, not the end.

Sometimes I suspect that some of those debt-free people are now just plodding along, perhaps saving a little money, hopefully remaining debt-free, but still not going anyplace. They’re no longer digging a hole, but they’re not building anything either.

If you’re now aiming at paying off your mortgage, I hope you’re saving the money in a money market account rather than making extra payments as some people advise.

I wouldn’t trust mortgage owners to be keeping good records of every payment — or of their computer programs being able to track the changes in your principle and interest every time you pay an extra $50.

So my suggestion is to keep it all in a money market fund until you have enough to pay the mortgage off. That way you don’t have to trust their records, and if you would need the money for an emergency, it’d be available.

If your income stopped suddenly due to a job loss, you’d find it hard to get a home equity loan to tap into your home equity.

You’re lucky to be able to work together as a couple. Debt was one of the two major reasons for my divorce.

Getty Realty Corp

My wife and I years ago found ourselves in a debt situation and it was a real struggle so anything that can help instruct people is great.

Glad I found it, thank you.

My fiance and I are working towards the debt-free goal. A sizable amount of student loans is all we have left. We’ve decided to pass on the home purchase for the time being as we’re attracted to the idea of mobility.

We’re trying to brainstorm ideas on how to accelerate our current payoff schedule from 2.5 years down to 1.5 or less.

Best wishes for 2010!

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