What's The Fastest Way To Pay Off Debt?

[@ladypilliwick8179]

Being debt free is soooooo great

[@bmw1175]

Yes it is! My wife and I just paid our last payment on Friday August 9th and it feels awesome. Now onto building our large cash emergency fund and then investing 15% into retirement and getting house paid off in less than 10 years.

[@mattcrouch9348]

Aye. I just ran a report and discovered that over 10 years I went from *paying* 6k a year in interest to *making* $2k in interest and investment growth. That's essentially an $8k raise, $750 more per month for me.

[@LaNguyenBTong]

I deadly agree.

[@memelord7821]

Wdym, being debt free is dogshit, the bigger loans I get to have, the more money I make. Just invest the loans in assets instead of liabilities. The market beats most interest rates.

[@Fitforacting]

Alexogo96 123 you should make videos with all that knowledge

[@FLWVideosYT]

I got an undergraduate degree in Finance and reflecting has been so interesting. All of the classes I took just focused on the mathematical side and not the behavioral aspect :(

[@lesliealvarez6958]

So true, thanks for sharing!

[@x18xfearless]

You two have an awesome chemistry together, the comedy, visuals, sound, pace, and topics are on point! Only thing is you need to please make videos 10 times more frequently because I cant get enough! Keep up the great work! This channel will be huge in the near future!!!

[@TwoCentsPBS]

Thanks so much Nelson! Being married IRL helps with the chemistry part haha! New episodes every Wed, be sure to subscribe! - Philip 👨🏻

[@SideEffectsmusic]

Yes!

[@JuanPerez-cp6mn]

Love them they make it simple in a way to motivate you :)

[@younglord7805]

Two Cents Dwight speaking: and they look healthy, I hope they'll have more babies. We need more geniuses )

[@nylnyl.]

I love them ... :-)

[@pierrejoseph8065]

In a perfect world, two cents would be what you'd watch on TV on a daily basis as it is very informative and life changing. Keep it up guys.

[@TomsTinkeringandAdventures]

I was a CFS (Command Financial Specialist) for the Navy for a while. We were taught to use the avalanche method (I think they called it Full Steam?) but I also would tell people to use the snowball type, because it does feel good to wipe out one of your creditors. Sometimes we would hybrid the system, pay off one small debt and then start on the highest interest one next. Whatever way you use, just keep paying them off!

[@vicgamesvt9682]

Me and you think alike I just wrote a comment about hybriding both methods together playing the lowest debt and then the highest interest.

[@SteveRCPilot]

A hybrid would be non linear and could work just as well.

[@lidarman2]

This basically shows there is a monetary cost to mental weakness.

[@jonguyen100]

Don't cut yourself on that edge, kid.

[@boulderbash19700209]

Being in debt is the first symptom.

[@witheringi9492]

Capitalism essential fuel source-without it the whole thing would colapse

[@tEqUiko]

🙋❤✂💳

[@bmw1175]

No it’s a science actually. Everyone is governed by it. All our behaviors are shaped.

[@brianthered]

Caught the plug for your show on another PBS youtube series. Gotta say I've now binge watched all your episodes. Great content. You both are great presenters. Love the format. I honestly have so many topics I'd like to see you two cover. Not for personal reasons, but as general "I wish this was told to me when I was in high school" type content. Issues I've seen with people that might make for good content. 1. Why attorneys don't represent tenants. 2. The various ways child support is calculated. 3. Paying off your house vs saving for your child's college fund. 4. How to dispute your credit report rating / general info about the big three. 5. Bankruptcy, myth and fact, and why it's so complicated you need an attorney. 5a. Secured, unsecured, and priority debt in bk. 5b. Different chapters. 5c. The aftermath, and how credit companies stalk clients with offers after filing. 6. Insurance, why most people have term life and will never use it, vs short term long term disability insurance. 7. History of money. Debt as money. 8. Retirement. Index funds.

[@TwoCentsPBS]

Yay, so glad you checked out our channel @Brian! We actually have about half of these topics you suggested filmed already and they'll be rolling out this fall -- stay tuned and subscribe!

[@brianthered]

Two Cents awesome!

[@brendagomez5072]

Great topic suggestions!

[@ared18t]

@@TwoCentsPBS omg yes!!!

[@busyrand]

Same. New favorite channel! Binge watching and I have something else I should be doing right now.

[@C_HILL_OUT]

I used the snowball method and in 4 years paid off everything including my house. Feels really good knowing my home and vehicles are all mine and not some banks. Any debt collectors that may call me either have the wrong number or are looking for my ex wife.

[@eldiesel4593]

Well the house isn't yours. You're paying rent for life on the house, it's masquerading as "property taxes." But I get what you're saying.

[@eldiesel4593]

@John Lester You don't actually own it. That's the trick they've pulled. But I get what you're saying too. -- Stop paying your property taxes, and don't get evicted, that'll prove to me you own it.

[@joeisawesome540]

@@eldiesel4593 you do own the house, but you do not own the benefits living in a city provides that are paid by property tax.

[@eldiesel4593]

@@joeisawesome540 If someone else can evict you, you don't own it.

[@joeisawesome540]

@@eldiesel4593 well, they can tow your car if you don't drive it properly.. I guess you don't own it?

[@danycashking]

Personally, avalanche works best for me, I'm a person with a very high wait threshold for rewards and I'm pragmatic, eliminating a small debt will only make me even more stressed out about the big one still waiting on me and about the timescale it will take to ultimately be done with it. Getting rid of my biggest weight first makes me feel relieved and confident that if I made it through the biggest one I'll be fine with the rest of them because I've made it over the biggest hurdle, it's all downhill from then on.

[@quarterdocker]

Have you ever been in debt? It's been my experience that people who can use the avalanche method are the types of people who avoid debt. Most people in debt either lack self control or they don't do the math, which is why the snowball method works for them. If you had self control and did the math, you wouldn't be in debt.

[@baxakk7374]

@@quarterdocker Yeah, it's unthinkable for me why anyone wouldn't pay the highest interest one first. But then again, I have got no debt.

[@saiyjin98]

@@quarterdocker I use the avalanche approach, but I only have "good" debt to payoff instead of consumer debt. I also do the math and budget before signing up for any new loans. Can't people who lack motivation just automate the paying of their highest interest debt and forget about it until it's paid off? Once I have a payoff plan setup to run automatically, I immediately get the reward of not having to worry about it ever again.

[@quarterdocker]

@@saiyjin98 what is this "good" debt you speak of? A mortgage? You even mention not having consumer debt, which is the debt people get into as a result of not having self control or doing the math. That's the kind of debt that the snowball method is more effective for. Of course the avalanche method works for you, you don't get into that kind of debt.

[@quarterdocker]

@Nick White In that situation, you pay off the car note first whether you use the snowball method or the avalanche method.

[@arasmith1]

Can someone please forward this video to the U.S. Congress?

[@afriendofafriend5766]

Andrew Jackson did it. We just need to get those tariffs up to 40% again.

[@yodaflyz]

Politican: I could put together a realistic plan on how get the government out of debt but the banks that love collecting interest off our debt contributed so much (bribe) money to my campaign that I would not of been elected without there support. I better support my financial backers by ignoring this issue entirely while they continue to screw everyone else.

[@chrism3933]

@@yodaflyz The issue isn't with the politician. It's with the people who elect them. We need more statesmen and less politicians, but today, everyone wants something for free so that's not happening anytime soon.

[@aaronlandry3934]

Chris M I agree. Every other politician promises free everything, which is the polar opposite of what we need. We need less spending to pay off debt, not more spending to increase our debt. I wish that Economics was a mandatory subject in schools. Maybe then, we wouldn’t be electing idiots with no concept of money, spending, or debt?

[@RhinoXpress]

Congress doesn't care, because it's not their money that they're spending, it's the american peoples money.

[@MrEmoImo]

I hope everyone can watch this and get out of debt. Being in debt with no way out is the worst feeling in the world.

[@KhalidElMouloudi]

An arabic proverb says that debt is a dread by night and a shame by day.

[@motorcyclelad]

Khalid El Mouloudi Great proverb!! If you haven’t read “Richest Man in Babylon” I think you’d enjoy it. Full of great wisdom like that.

[@RSPCoding]

Look up dave ramsey snowball

[@yeflynne]

Industrialism is set up to make debt slaves

[@LivingWithTheGuzmans]

The snowball effect has worked for us.

[@robn2171]

A few visits to the ATM, snowball method and pound that debt.

[@watchvids7802]

I love the whole production of this. Not only are they super pleasant to listen to and animations, like at 1:45 for the "Avalanche approach" extremely eye-opening (financial advisors should have those!), but the short video format is also perfect for this subject matter. It's not putting people off by being too dry, on the contrary, it makes you suddenly want to do something super savvy! :D

[@TwoCentsPBS]

Thanks for the kind words - so happy you found our channel! - Philip 👨🏻

[@herbertspencer8293]

kzbin.info/www/bejne/n5quo2CfZZdlo7s The Progressive Growth of the Money Supply Principle (year 2013) tells us the exact quantity of new money the economy needs to works correctly, driving us to the Wicksell interest rate or natural interest.

[@According2Adam]

avoid debt like the plague

[@Kanal7Indonesia]

Amen!

[@alecoloxa]

Avoid debt that wouldnt improve you.

[@eddiepottr]

And spread it like wildfire

[@hrisikeshbhattacharya5467]

@The 3 E's unlucky, asian parents usually pay for their kids fees.

[@MrDaniyalAh]

This comment didn't age well

[@aqueen13]

I’m surprised you didn’t also mention the tsunami method of paying off debt. That is my preferred method, it works really well for me. It is basically listing the debt by what is the most pressing or stressful, no matter the rate or amount owed. I find that the emotional relief is just like what you explained for the snowball, but sometimes a bigger debt is more urgent and goes away faster than a small one, which can feel amazing!

[@rosastrohhut]

It really works! Paid off my credit card today, feeling awesome! Now it's the student loans that are being a giant monster to be managed! Thanks guys!

[@TwoCentsPBS]

GURL. YAS!!! You should be thanking yourself and your hard work!!! : )

[@goodfellabeats]

I've gotten out of debt using the "payoff the high interest rate" approach. Highest interest rate usually has the highest monthly payments. Once I paid off the high interest rates I had a lot of extra money to throw at the other debts. I saved over $5,000 on interest that I didn't pay. That was my dopamine rush. Math don't lie!

[@RipenedKarma]

My mom has always been the type to use the snowball method and tried to push it onto me but after 10 years of trying to do it that way, my debts never changed. I switched to the avalanche method, saved all my cash tips until I reached the full student loan amount and paid it all off in a single day. I’m finally student loan debt free after saving for only 6 months.

[@DerangedAussieMan]

The true avalanche method involves paying off pieces of the debt as you get paid, rather than saving and paying it off in 1 go.

[@CamJames]

@@DerangedAussieMan i used the true avalanche method this year and just paid all mine off. What Victor is suggesting is more like a missile, and it only works if the accumulating interest isn't more than you save.

[@thusharaAV]

"If you are doing Math, you are not in debt in the first place" - Dave Ramsey

[@a.l.t.3182]

I mean sometimes you have to

[@thomasmoore8096]

Dave should have made a cameo here lol

[@MatthewBennettFPV]

Turns out I’m an emotionless robot. Avalanche method all the way!

[@adientoledo2098]

This channel is amazing. It clearly explains the psychology and emotion behind habits and behaviors that drive money decisions in our daily lives.

[@tennisplaya16]

I loved how they touched on the psychological side of paying off debt. Another important factor psychologically is knowing why you want to pay off your debt so quickly. You have to have a reason why you are willing to make those temporary, but sometimes painful sacrifices to achieve the goal. Not only will that goal help you continue the course, but you maybe able to “sprint” faster because of it.

[@claraheindamgaard8451]

The guy really looks like Ryan Gosling

[@janebaker4912]

Haha someone finally said it. Maybe a Spanish one?

[@TwoCentsPBS]

Haha, thanks guys! I'm blushing! -- Philip :)

[@Jonassoe]

@@TwoCentsPBS You're not fooling anyone with that fake mustache, Ryan!

[@leilanidru7506]

Jonassoe 🤣🤣🤣

[@StudentLearning737]

he looks like money mustache

[@camster1727]

Philip and Julia, I LOVE your channel!! I'm productive bingeing right now--watching your videos, doing personal finance and real estate research, drafting spreadsheets to assess timelines for and paths to achieve various goals, watching more videos, learning about tax brackets, investment strategies, and D*BT, watching yet more videos, laughing, and dreaming up my future all the while! This is a good Sunday. You two are wonderful. Thank you!

[@villafontananorte]

I am expecting to be debt free by April. I work to be free and enjoy my money, not to be a slave at work. I have met so many people who has to work 40 hours to pay their bills cause they gotta show off the latest car to their friends and coworker. My current and total debt is $5,000 dollars. I can only work 35 hours and enjoy my life. Go places, eat outside. I keep a basic lifestyle. I don't buy what I don't need. I have lived pay check by pay check and it does suck.

[@villafontananorte]

@Reinald Yes, kind. My only debt is a used car debt I bought a year ago to be the backup car. $3k more to go, $165 per month. I don't have any CC debt or student loans. Have $4k in my savings for emergencies only.

[@rhoonah5849]

@@villafontananorte $4k isn't much. Perhaps increase your work to 40 hrs/wk and save a bit more in case that car needs work or you need money for some other reason. With a car loan for $5k and only $4500 in the bank you are insolvent and still living paycheck to paycheck but you just don't realize it.

[@villafontananorte]

@@rhoonah5849 It is not that much but my only expenses is the car loan, $165 per month. My rent is $650. Utility about $150. Maybe $100 in gas per month since work is only 7 minutes away. Cell is $35 with RedPocket. Insurance $85 per month. Any $15 an hour job can pay my bills.

[@risingraisings7012]

@@villafontananorte smart

[@IFearlessINinja]

Just Go North! Only expense for now. Emergencies happen, so it doesn't hurt to be extra prepared if you can take a few extra hours here and there. Up to you of course

[@johnl119]

I don't know why but feel so happy when I watch any of your videos. And this for any topic you are talking about... between the animations and the presentation this is fantastic!

[@TheBuzzSaw]

I am a fan of the debt snowball, and I feel one important aspect was left out that math-oriented spenders can appreciate. If there are *years* of paying off debts ahead of you, there will most certainly be interruptions along the way: medical bill, broken furnace, etc. The snowball method has the distinct advantage of widening your gap earlier in the process. Sure, it may feel silly paying off that 0% interest loan of $500 first, but getting rid of it at the beginning means you reclaim that $25 per month very early in the process. If at any point you need to pause the snowball, you have access to much more money than if you were doing the debt avalanche and grinding away at that $50,000 loan. Also, when comparing snowball and avalanche, be sure to run the numbers for real! See what the difference is! In my case, doing avalanche would have saved me a couple months and a couple thousand bucks, which was peanuts in the context of how long I had to pay them off and how much I owed. Going snowball was the right choice for me.

[@IFearlessINinja]

As a math-oriented person I found your argument illogical. It only "frees up" that $25/mo psychologically to a rational spender. If you need to pause the snowball, it likely makes more sense to add the new cost in as more debt, then continue paying your highest interest item off first. Your new bill is unlikely to be the new highest in interest, so you are putting yourself back even further than before. It's a good psychological strategy but I'd argue not a great one for a robot

[@qy9MC]

1:40 Heh, jokes on humans I am a mathematician! Unfortunatly the ability of managing high debt is useless when math already gives you the ability to manage your finances correctly.

[@PW060284]

Keep emotions out of your finances everyone. You be better off for it. Be DISCIPLINED, follow your brain, logic, and MATH, not your feelings. Honestly, if you just keep your feelings out of your finances, you wouldn't even need to financial advice in the first place.

[@vangrails]

That is all very true but most people happen to have feelings.

[@johnriggio9781]

Most people can't point to Europe on a map. Most people cant perform what is considered basic math in high school. Most people lack basic emotional control. Most people are fucking stupid. You got to set the bar really low. We are talking about humans after all.

[@johnrickard8512]

Agreed. In fact, the avalanche method is generally the one used if for some reason I have to rack up a lot of debt(generally caused by an unforseen expense). When this happens, I consider my finances to be in "damage control" mode, at which point the avalanche method is used to correct the problem before it spirals out of control.

[@systematic101]

@@johnrickard8512 If I were in a place where I need to cover the cost of an unforeseen expense I would use the reverse of the avalanche method to pay for it (max our the lowest interest rate sources 1st and move up the interest rate sources). Then I would apply the avalanche method to pay it off. I know so many people who have $10K credit cards as a "safety net" for these things I just think they're crazy. Years ago my structure was $5K in a savings account that got me as close to inflation or higher followed my a $10K line of credit, followed by a 2nd $10K line of credit with another bank. That gave me access to $5K instantly with no interest costs and access to $20K with interest rates of 4 an 6%.

[@siddharthkapadia7674]

R u a bot?

[@taiuqsab]

Soooo, i did the reverse snowball effect by by minimum payment instead of total balance. Highest minimum payment got paid first with an extra payment on it, then the smaller ones. I don’t have a lot of debt so this reverse snowball also was aligned as the most rewarding to me to pay off vs the least rewarding. Once I paid off my car, I was so happy and everything else after that was easy because none of my other debt was as expensive per month as my car note. Then I could hit my next two debts simultaneously and be done in a year.

[@kimsonnguyen3789]

Thank you for the encouraging and practical advices about money! I really appreciate the channel making these stressful topic easily digestible. Your videos always bring a smile to my face. You two are the best!

[@manikenpachi2760]

I hope this channel last forever I want to show my daughter all the videos So she can understand life as she grows up! Great Channel!! Guys love it!!

[@Hannahbenowitz]

With inflation running at a four-decade high, the Recession is now the ‘most likely outcome for the economy and I cannot imagine being a victim of circumstances. My portfolio suffered a big hit, holding it further won’t be any good. I've heard of people netting hundreds of thousands this red season. How can I ensure this?

[@JosephineKenney]

Indeed, you are correct! Economic downturns offer numerous prospects for ordinary individuals to create wealth from the ground up. Nevertheless, seeking guidance from an investment planner might be necessary if you desire a more assertive return.

[@PennyBergeron-os4ch]

The uncertainties accompanying this present market is more reasons I have my daily investment decisions guided by a portfolio-coach seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to outperform. Netted over $800k in return on investment, since using a coach for about a year.

[@PennyBergeron-os4ch]

I agree, having a portfolio manager for investing is genius! Not long ago amidst the pandemic crash in March 2020, I was really having investing nightmare prior touching base with a license portfolio-advisor. In a nutshell, i've accrued over $550k with the help of my advisor from an initial $120k investment thus far.

[@HildaBennet]

l've been down a ton, I'm only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?

[@PennyBergeron-os4ch]

SONYA LEE MITCHELL is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@robmckee5295]

At 4:08.... I like the weapons upgrade analogy. Unlike the Dave Ramsey approach where I pay off everything except my house, I kept my debt snowball going. I paid off my house in 2018, paid off one of my rental properties in 2019, with two more rental properties to pay off. It's so much fun blowing big chunks off planet-sized debt with my Death Star superweapon quaintly referred to as the debt snowball. I'll try to remember to send another reply when it's all done. Love your channel.

[@DanUtley]

Let's give a round of applause for Dave Ramsey! Who's been pushing the snowball method for a long time!

[@NotShowingOff]

D. Utley and you trust Dave Ramsey isn’t secretly funding this? Obviously keeping an eye on total balance and interest is important. Paying off one small debt shouldn’t mean that you are farther from paying off the debt as a whole because you let the interest accumulate.

[@wrestlinbulldog]

Love it. I’m in FPU and I am a daily listener

[@foford2010]

"If you were doing math. You wouldn't be in debt to begin with. 80% behavior 20% head knowledge." - Dave Ramsey

[@majstealth]

@@foford2010 yep, if a person is able to calculate, they would not overburden what the have and get

[@Rubberglass]

Better than I deserve!

[@bangbangyouredead7]

I don't know why, but the way you two said the tagline, " and that's our two cents" in this video came off as extra sweet. Y'all are precious. Keep up the good work!

[@theonlybuster]

Interesting. I guess the avalanche method worked well and effortlessly for me because I'm a math person that didn't need continuously positive feedback. I simply made a plan and stuck to it, kinda like how I fight high level bosses in a video games. I also saved money because I took into account interest rates on each amount rather than looking at the simple owed amount.

[@stephans1990]

The last two years I've actively made work for fixing my finances. I track my budget, income and expenses in an excel sheet, started cutting expenses (most importantly; traded my luxury SUV for a budget stationwagon) and decided to put all my bonuses directly towards my debt repayment. This month I repaid the last bit of my student loans!

[@jlalvarado024]

Love your content so far. I see this channel becoming a much cooler less old fart-y version of Dave Ramsey's thing. You've earned a subscriber with me and I'm planning to force feed all your videos to my friends.

[@TwoCentsPBS]

Love it!

[@jaysonbohnert6373]

But I like Dave too!

[@salvation747]

Dave is awesome Bro don't hate that man has change a bunch of people ... got me paying debt 64k

[@kasayounga330]

Dave's advise helped me pay off 130k in two years making 70k in the family household. snowball works! I like their visuals of his advise.

[@Luxyglamlife]

Juan Alvarado I force fees it to my boyfriend all the time and he loves it 😄

[@ajf5324]

Couldn't be more true, and even applies to most things in life. You have to start building momentum some way, momentum is the key

[@GeneralChangFromDanang]

I've taken the "ignore the debt and build a savings because I don't know if I'll have a job tomorrow" approach.

[@sofdolo]

Same

[@AlexMint]

A lot of people push for paying off debts immediately, but having a bit of flexibility allows you to be able to say no to bad deals, and if your debt % is low enough, allows you to out-earn your interest payments.

[@mqmoreno2368]

On my way to being debt free 🤗 already paid one of my debts i'm on to the next one feels so good

[@helenoliver4838]

If being a millionaire retiree is your future forte, then keep a close eye on the stock market stakes and ensure that you invest in the right stocks that suit you.

[@henrygarcia1792]

It’s easy to double few dollars in the stock market

[@georgecooper8750]

Investing in the stock market is the best option to make a passive income. Virtually all the markets are crazy, most people pay more attention to the shiniest position on the graph, I’m keeping a diversified portfolio.

[@devdaniel3225]

How possible is it to earn a thousand dollar per month on the stock market?

[@danieljamal3709]

You can surely earn $1000 per month by trading stock market, provided you have in depth knowledge of trading strategy like technical analysis, chart patterns, support and resistance, trendlines, risk management

[@dannyvera8475]

most stocks in my portfolio are underperforming and there’s too much volatility with key stocks. Which stocks would you recommend I buy?

[@fuffoon]

I spent 25 years in debt. When I finally became debt free it was one of the most moving moments of my life. It took me a long time to learn that materials very rarely make one happy. A decent bank balance and solid security feels much better than alloy rims. Notably, I never owned a television after leaving home. I believe that made a difference in what my debts were for. I did love the cinema.

[@khh1964]

The more important question.... How is he pulling that mustache off?

[@oscarapple1365]

Just subscribed to this channel. Most if the content reinforces what Dave Ramseys teaches. It's great! I'm almost debt free, just got our house to go!

[@bushmaster6894]

I mustache you a question... not really, just wanted to get that out of my system.

[@richasati3139]

I'm hooked to your content. Love your work! Please make a video on whether you should give preference to investing or paying your debt when you have a steady income. Or in what ratio should you divide your money between the two. Thanks. :)

[@PureGold197]

Oh son of a d*bt! I just d*bting dropped my motherd*bting croissant!

[@bluetune21]

This is so insightful and true in my experience, thank you guys!

[@tonycns]

7 Baby Steps

[@bmw1175]

tonycns Dave Ramsey absolutely

[@abdullahfurkanozbek7558]

I love the content you are making and the explanation. I also notice the body language while both of you try to tell someone and the other one keeps the listener in a good shape that you never get bored. Thank you for valuable and entertainting content.

[@Luxyglamlife]

Also I’m doing the snowball effect and it’s the best. It makes me feel good when I pay off a debt quicker.

[@martasoltys9091]

I loved this video. I like the snowball effect. The thing is... it sucks being unemployed and there are also many reasons for that, too. For example, you can't get a job in your field for 6 weeks, so EXHAUSTED, you try anything. Then, you get a job offer but it has no benefits. Do you take it b/c you're desperate? Is it worth your time? Then on top of no benefits, you find out you're not even an employee, but an independent contractor (a fast growing trend amongst businesses so they have less responsibilities towards you). It's rough out there.

[@jackkraken3888]

I've watched so many 2 cents videos I made a dollar. 😂

[@verasands1598]

Like 50

[@Znerca]

You guys make boring and simetimes scary and overwhelming topic very interesting and less painful to watch. I love your approach and how much I learn from you both.

[@leelya6272]

Yaaaassss New video! I was waiting for it for the past few days 🤣

[@TwoCentsPBS]

Laizra, since you're obviously following our channel closely right now, there will be a new episode TWICE PER WEEK all fall! Woo-hoo! -- Philip :)

[@CartoonComrade]

Wow, this channel is a gem! Love the format of these videos

[@bherber]

As soon as I started watching, I was going to say "Snowball Method" as trumpeted by Dave Ramsey first, lol.

[@thomasknight604]

Snowball method existed well before Ramsey

[@ornenow4703]

Off topic but am I the only one who actually enjoys hearing about other people's dreams? I didn't know this was such a taboo topic lol

[@10feralratsinacoat76]

I have 5500$ in college debt and I graduate this semester and I’m gonna try to pay it off with my first couple paychecks, so I’m binging your videos to pay it off and save up my emergency fund before I start my official adult life. Y’alls videos really help :)

[@fabinfrancis007]

I absolutely love these guys. So much wisdom. All the best for your future endeavours :)

[@TwoCentsPBS]

Thank you sou much! So glad to have you :) -- Philip

[@elegate87]

Over these past 3 years I started the snowball method and once small debt was paid off I moved on to the next. It has gotten me so motivated that I even started cutting off unwanted expenses such as gym, netflix, hulu.

[@zandrewmorano10]

I think giving up gym is a bit sad for someone who regularly exercise there 😭

[@Aikidoman06]

It makes mathematical sense to pay off debt based on the interest rates, but may not be the fastest way. You may have a 20% card and 17% card which is close in interest rates, but if you can get rid of the 17% card in three months verses 13 months on a 20% card you reduce the debt faster. Money management is as much emotional as it is financial. It often makes sense to knock down some small debts first to see your progress. It's too simple to go strictly on interest rates. What it does take is a plan with goals and disciplined execution.

[@nomsshorts94]

Skykiller Right, there’s no one size fits all

[@andriyshapovalov8886]

Mathematically avalanche( higher interest first) IS the fastest way. But some ppl don't do well with mathematics, even basics.

[@username00009]

Andriy Shapovalov depends on whether you’re “mathematically” talking about the total amount of debt or the total number of creditors - Skykiller is talking about the latter, while you’re talking about the former.

[@zsofiaszabadi]

You channel holds such an incredible value, I really appreciate you sharing information on these topics. Growing up I always thought talking about finances are for affluent people because this is what society teaches us. But with the help of your videos everyone can realize that lower and middle income people like me should also learn about money, in order to handle the amount we do have in a smart way so that we don't loose it and even potentially generate more. It took me more time than I would like to amit to realize this, but I am finally aware of this. Thank you!

[@konradw360]

The fastest way to pay off a loan is to take out a loan and have the cash on hand to pay it off immediately afterwards

[@AurelioPita]

Great channel guys. The method mountain graphics were one of the best visualisation I've seen about the topic.

[@Broxalax]

I use this method. Buy a small home so you aren't paying rent anymore. Pay as much as you can to pay it off quickly. It's a small 2 bedroom unit so doesn't take long to pay off. Use the equity to buy a bigger family home or an investment unit. Either way you have a secondary income to pay the next mortgage. Keep paying as much as you can. Just keep this up and then when one is paid off, buy another investment property. Interest on investment properties is tax deductible. I have 6 properties now with my wife and I am 34.

[@Rbbrdcky]

I've said it before but I freaking love these two! And wow, the production value in this video is off the charts! I know it takes an extraordinary amount of time and effort to make these, but the impact they have on those people you help is immeasurable..

[@EdwardThimbleHands]

The only debt I have is a house and car note and the car is 0%. I'm one of the few people who parents and grandparents turned off the phone and cable before accruing interest on credit cards and that stuck with me when I got my first line of credit and first job to go with it. The best way to get your kids to be responsible is to show that even what most people consider basics aren't free and keeping them fed and in a home is more important than watching TV.

[@2awesome292]

Car's really aren't 0% interest because you make up for it by being charged a higher initial price.

[@EdwardThimbleHands]

@@2awesome292 you get charged a markup for any vehicle unless you can buy it from another owner instead if a dealership. Though the owner isn't likely to provide you with a warranty (unless there is still one in the vehicle and you get it transferred), and dealerships normally do an inspection and give you the option to buy a warranty or extend the one that it already has if it is under a few years old/under the milage cap. Either way, I was paying for a new vehicle and I'm paying nothing for interest. I'm effectively paying a "buy it in full" price over there course of my contract. In simpler terms: If you go to any dealership you have the markup, closing costs, taxes, and anything else they are going to charge you anyway. The price doesn't go up if you finance at 0% because it is based on your credit and if you fail to pay you incur the accrued interest plus likely have your vehicle repossessed.

[@2awesome292]

@@EdwardThimbleHands That $25k car @0% interest is sold to an investor for (made up#} $22k, they are just including the interest in the price of the vehicle to make it look like they are being generous. Would more people buy the car for $22k @X% interest rate or $25k @0% interest? I'm not saying don't buy 0% interest vehicles; i'm saying compare the $25k @0% interest vs the $23k @X% interest. I'm still saying almost new vehicles {depends on brand though tbh, used Subaru's can end up costing more than new ones for dumb reasons} are a better buy than a new vehicles and just put the difference in investments and you could potentially pay for your next car from what you saved. Btw, you are able to buy extended warranties with private sales, dealer gets huge commissions for selling you those extended warranties (sometimes they make more off of warranty than they do off of the car}

[@randomvideosn0where]

The other way was effective with me. My dad would max out the cards, overdraft his checking, entire winters with a broken furnace, lights getting shut off, running out of gas, etc. Now I save over 1/2 my money so I hopefully never live like that again.

[@taiuqsab]

I agree. I haven’t had cable for over 10 years. Throughout college and into adulthood I use KZbin, not even Netflix or Hulu. I spend too much time making extra money!

[@AnnAdventures]

The best video. Both entertaining and educational at the same time

[@kirakoraawesome]

let's talk about debt baby~ let's talk about you and me let's talk about all the good things and the bad things that may beee let's talk about debttt 🎵

[@The3rdGunman]

Recently paid off a student loan, credit card and a small loan. Feels amazing. In my efforts, I learned you have to balance your finances on a scale of Time & Choice. Remove the emotion by making the decision in advance to that you are either saving Time or buying Choice. You can not make more time so if a financial choice like the order you pay debt or where to buy something, saves time it's always worth it. on the other side of the scale, if sacrificing now buys choice later it's always worth. I have way more choices now which is freeing of guilt or indecision. If a purchase or experience doesn't turn out I can afford that lose, but I don't lose time and the choice is an experience/memory of actual living. There's life and quality of life. Buying things by scraping by or being conscious is not freeing thus not life.

[@janebaker4912]

I love this show

[@TwoCentsPBS]

Thanks so much Jane, we're honored you joined us! -- Philip

[@yesno5286]

what a quality show.

[@italiangal898]

"$26,000 student loan debt", 😂

[@sacr3]

Spent my life in poverty, then in my 20s I said enough, got my GED, then did 3 years of college, then got a career, now I'm making 1700 bucks a week..... but I spend it on stupid stuff to curb my boredom, so it's difficult to save even making that much. So watching this channel is a must for me, and taking other actions as well. Got to start saving, paying off debt, and looking for a house. Awesome channel, cheerful folks, you explain things very well and clear. I can see this channel growing quick!

[@TanvirKaykobad]

Yeah, I'm sticking to the mathematician's method.

[@gargoyles9999]

Tanvir Kaykobad as long as you stick with it, the problem is most people don't

[@ghostofsilence2697]

I was taught this method first and early on. I dont really care if progress toward paying off the largest debt takes longer as long as I can see that progress is being made.

[@jazziered142]

I'm actually doing my most annoying bill first. I just hate it so much I want to get rid of it. I get so happy everytime I make a payment on it. Then after that, my highest interest is actually my smallest debt, so I will be doing both the avalanche and the snowball at the same time.

[@username00009]

I used a comparison calculator and using the snowball vs avalanche method only made the difference of about 6 weeks in my estimated payoff date. I went with the snowball method because I was willing to pay 6 week’s worth of interest for the added psychological benefits of the faster wins.

[@naveensundar4765]

@@username00009 Wow. Smart stuff

[@feynstein1004]

I discovered this channel today. I mean, I'd heard about it on other PBS shows but hadn't gotten around to checking it out, mea culpa. Anyway, I'm already hooked. This might be my favorite thing on economics after Crash Course Economics.

[@AxelQC]

With the snowball method, that 22% interest loan is going to grow so fast you will never get rid of it while pursuing that 0% interest loan. Instead of snowballing, you'd be far better off consolidating into a lower interest loan.

[@godozo]

You're assuming that the lower interest rate loans exists. And while they often do, they may not always exist. Second, even though that 0% interest loan is wonderful, it's still money that must be committed. Given that one can get rid of two debts with 1,850 dollars (or so, interest on the 11% should be small if you focus on that), I'd say knock the 0% out for the sheer flexibility...and maybe THEN focus on the 22% (again, should you be unable to get rid of it. Payday loan stores can be beasts to get off one's back...). Remember that one can always shift the focus when necessary.

[@Telhias]

@@godozo You may be able to use the quote of one bank interest rate as a leverage for another to get it lowered a bit. A bank would rather have you be indebted to them than to their competitor so they may cut some slack on their profit margins to entice you to choose them.

[@yusufzia6923]

@@godozo the best approach mathematically is the brachistochrone which you can think of as minimizing everything or in other words which is the order in which i have to pay the least

[@darenot2128]

This really works. An accountant friend told me about this years ago. I implemented it and got out of debt. What seemed impossible became possible. Well done guys. Thanks for sharing this info.

[@mwam1985]

These guys are perfectly describing what Dave Ramsey has been saying for the last 30yrs..

[@ivanaandric5703]

👍👍👍👍👍❤️!!!

[@franklinsenekhamphone6204]

This video is one of my faves you guys have made! I've considered both methods to approaching debt and I found both to be effective in their own ways so I definitely agree with this video. Based on my "Gap" I switched between both methods to tackle debt and still enjoy my spending on the side. DEFINITELY gonna share this one with friends and family.

[@TommyleeATGMAILDOTcom-ws3wg]

For hacking job , credit card , bank hack , credit score fix and western union hack , beep hackguru on WhatsApp [phone] and mail on [e-mail]

[@KanuToCL]

if you get hooked on positive reinforcement, what happens when you finish the game? Wouldnt you seek out more of the same to restart it?

[@TwoCentsPBS]

Such a good question! As a matter of fact, what we have observed is that the "Game" continues, except you're putting the money into investments or savings instead. Getting "hooked" on the positive reinforcement of eliminating debt ends up becoming a super-powerful savings tool that can last a lifetime. -- Philip 👨🏻

[@KanuToCL]

@@TwoCentsPBS interesting... i guess ill consider debt management through this method as a gateway drug towards becoming an uber-rich. Cheers!... found your channel today and, so far, really have enjoyed the videos

[@rodeo626]

@@TwoCentsPBS great response. Right on point.

[@pkpksd1]

I've been practising 'No Debt' whatsoever for the past 4 years and have seen visible change in my overall well being.. ive earned more YoY and have saved enough to stay debt free.. I know not all can be debt free but if you can downgrade your standard of living from what you can afford today, you will suddenly see surplus. with some patience and determination without greed will help you grow the corpus systematically.. My brain now automatically refuses to get into debt and this let's me sleep peacefully with limited financial pressure... love ur videos guys..

[@grantchow13]

Staying out of debt is simple : Don’t spent more than you have Don’t buy things you don’t need Always pay off your credit card charges in full avoiding interest fees Never borrow money to buy things

[@saiyjin98]

I'd change the last one to "only borrow money to buy appreciating assets and pay them off as soon as possible."

[@Junokaii]

I actually have no problem talking about debt. It keeps me focused on it. And... I often do the Snowball Method myself. More cards paid off means more overall to the one with the highest interest.

[@Junokaii]

@89irishman Get lost.

[@hamobu]

Another positive attribute of the snowball method is that it reduces your monthly burden quicker.

[@daniellest-aubin7545]

Your segments offer such helpful information, thanks so much.

[@bmw1175]

Also because it motivates you and it’s fun it causes you to work more and want to cut your budget more thus actually making the snowball better mathematically. Also I can’t believe no one talks about the cash flow aspect. With the snowball it increases your cash flow with having fewer payments faster so you can cover emergencies with cash and not debt during your journey so you won’t get discouraged and also show you hey look I’m paying off debt and when something happened I didn’t rely on debt like before I can take care of it with cash. Just pause your snowball and pay minimums and use the cash flow difference to cover it plus your small EF as Dave Ramsey teaches.

[@AfroAtze]

You get less cash flow if high interest debts accumulate while you are busy paying off the low rates. Avalanche is superior, just stick to the fucking plan and dont stop paying off your debt because "it feels bad".

[@d14551]

I would advocate for explaining both methods, avalanche and snowball, to people looking to pay off debt and then they can choose. As this excellent video says at the end, there is no one right way that covers everyone.

[@beback_]

I still prefer what Black Einstein said.

[@yusufzia6923]

Yea bro mathematically its correct you are paying the least amount possible

[@chologuy]

So nice of you both to talk about it. Love this video.

[@Surbhit7]

I disagree with this in my personal case. I always go for the highest interest rate first. Reducing wasteful expenses is key.

[@kristiantofte1020]

Here in Norway when taking a loan for a house (it is a cheaper type of loan), another way of getting rid of your debt faster and paying less in the long run is to invest. Say you get a house loan where you have to pay 2% interest a year, plus reduction of the loan. Instead of paying reduction, you save that money in funds, which usually have a dividend on, lets be moderate and say 8% yearly. So you earn more money anually on the same money you would have put in your loan. After 10 years, you may cash out the loan, that might have had a full pay horizon of 20 years. There is however a small risk involved. Im getting such a loan in around a month for a new apartment. I will try to combine and not go full into paying max on the loan and take some of that cash into funds. That gives me the feeling of safety I feel I need, while also being smart.

[@TheTurnipKing]

Don't get into it in the first place. Of course, the practicalities of that are easier said than done.

[@IcantThinkOfAname9]

I can't imagine having debt from multiple credit cards, drowning in interest sounds like a nightmare.

[@jy60517]

The Dave Ramsey method works great. Once you get the snowball rolling does not matter what the interest rates are because your paying your debt off fast.

[@jonguyen100]

He didn't invent it.

[@santojacob1776]

The both methods were great. One more factor to add to it : Early Loan Repayment Charges levied on outstanding balance Loan lockin period : no Repayment in initial months. It would change the priority of the loan to be repaid first.. or even do not repay at all at once.

[@BryceLovesTech]

Dave Ramsey

[@rodeo626]

@Bryce Dave Rantsy is just a grumpy old dude who thinks only his methods work. He's extremely judgemental of others and believes he's above everyone else. Kind of like that priest who stole millions from the poor people to buy himself a mansion, cars, and $3K suits.

[@SeverinThirteen]

F*** Dave Ramsey and the mindless zombies who follow him

[@jonguyen100]

What a worthless comment.