Deep in Debt, Debt Tsunami

The past couple posts have been on how to reduce debt by approaching them in specific, logical ways. Even though it's hard for my personality to believe this, logical isn't always better. So I present the Debt Tsunami method. 

Simply, the Debt Tsunami is a debt reduction method in which you pay off your debts in order of their emotional impact. Emotional impact? Yes. Let me explain...in my logical, numbered way.

1. List your debts from smallest to largest including interest rates.
2. Focus on the emotional connection with each debt.
3. Reorder your list based on potential emotional impact.
4. Pay the minimum to all debts every month.
5. To your debt on top of the list, send all extra available cash.
6. Repeat every month and head immediately towards shallower water.

So you might be asking what exactly does "emotional impact" mean? Here are some good questions to ask yourself when ordering your debt by emotional impact:

1. How do you feel about the creditor?
2. On what did you waste spend the money?
3. How much of a burden is this particular debt in your financial life?
4. Is it secured or unsecured?
5. Is your mother-in-law the lender?

Finally, the key to Debt Tsunami is to not get completely illogical. Move that 20% interest credit card up a couple spots. Push back that $800 student loan at 2.75% interest if there isn’t a big connection with eliminating it quickly. Order the debts by how awesome it’ll feel to eliminate them combined with how easily you can actually get that result.

I hope I explained this well. But as before, I will provide you a link with more details: http://manvsdebt.com/debt-tsunami-the-ultimate-method-for-paying-off-debt/

We are getting close to the end of our series, so next time we will go over one more method to reduce your debt. 

Chris