Debt Snowball vs. Debt Consolidation #AskRachel

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It’s time to take a question from one of you! Rachel from Facebook asks, “Is the debt snowball method better than the debt consolidation method?”. Watch as I answer this question and let me know in the comments section below what you think about today’s video!

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Comments

Claritza Echevarria says:

I just cut off ALL MY CREDIT CARDS!!! Snow ball … Here WE GO!!!

T Regis says:

all my cc bills total about 408/month in just interest. my income is fixed and i cannot work to pay off this 15k of credit debt. i am consolidating my debt with National Debt Relief for a monthly payment of $335 for 36 months. it's going to save me about 4k. so i don't understand why consolidation is so bad.

Ana Denny says:

I'm thinking about starting the snowball

clarence loans says:

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daylen blacklotion says:

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Alicia Cheltenham says:

you are very funny

madnessofmymind says:

Now I need you to elaborate on why you are giving an ok about consolidation for student loans. I'm crazy buried under them and need to figure out if i just start paying them or consolidate then have just 1 or 2 payments instead of…7….

Lila2cute says:

Rachael, can you please talk about why student loans can be Consolidated???

ucrand says:

My heart behavior thank you, Rachel. Glad I clicked on your video, yet again.

HotnColdTV1 says:

The snow ball effect work on paying smallest amount to largest? How about working to pay higher interest first to smallest interest? #askrachel

renee skoyles says:

your app has changed my life! I'm finally on a budget! and it's not restrictive either!

Jendi P. says:

This is a fun one – loved all the asides. LOL. Good advice too! We paid off 2 more debts today.

Sherri says:

QUESTION: I have a $10,000 car loan (0% interest) and $30,000 mortgage (3% interest) to pay off. Should I pay extra money to the mortgage each month since it has a higher interest, instead of paying off the lower car debt first? #askrachelcruze

Ashley Garner says:

Lol…so agree with no need to marathon. Lol ?

Carrera Nicole says:

I will be starting to pay new student loans at the end of this year, why is consolidating student debt a good thing? I am doing my best to get rid of any current debt to be prepared for the student debt that will hit soon. Thank you!

Yanitza Cummings says:

#askrachelcruze my husband and I want to establish a budget. only problem were having is that he gets paid on a points system. So, he has to make a certain amount of point to make a good paycheck. sometimes they don't have enough work for him to make the points. how should we budget? help!

Rosanna Hay says:

Thank you for this. We have been going back and forth on what to do.

Stephanie Bogart says:

We are on the debt snowball. The most fun part besides actually paying off each thing, is DELETING a debtor from your life! I hand write everything and for March, my list of bills is gonna shrink by 3 lines! We filled our emergency fund, and paid off 2 cards! It's such a great feeling!

mikeyvester says:

I got out of debt long before I heard of Rachel Cruze or Dave Ramsey. I did the highest interest rate to lowest interest rate. Why, because I fell victim to one of those introductory credit cards wit 2% interest. That turned into 25% and it was my biggest credit card debt. I used the introductory rate to pay off my taxes. I was not money wise back then.

Heather's Journey says:

If you're paying off your credit cards, are you supposed to close them or leave them open? I heard you're not suppose to close them because it will lower your credit score

Ethan Deremer says:

#ask Rachel Hi Rachel I'm Ethan I have a question what is the difference between the debt snowball ? And debt consolidation ? Have a great day Rachel I'm a huge fan of your videos.

Emma K. Mason says:

Hi, Rachel!! Love your videos! You could start calling them "Vlogs" if you're looking to combine what you usually call them "video blogs." ??

Josh Turner says:

Wholeheartedly sister! ?

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