I‘ve heard a lot of discussion about Dave Ramsey's Debt Snowball recently, and why his method is mathematically inferior to other methods of reducing debt. Ramsey says he realizes that sometimes his way isn't the best mathematical way to get out of debt, but that it still IS, in his opinion, the best way to get out of debt.
Below is a quick audio explanation from his radio show about why the Debt Snowball works.
Here's a quote from Ramsey also explaining it:
Personal finance is 80 percent behavior and 20 percent head knowledge. The Debt Snowball is designed the way it is because we are more concerned about modifying behavior than correct mathematics…Being a certified nerd, I always used to start with making the math work. I have learned the math does need to work, but sometimes motivation is more important than math. This is one of those times.
I know this doesn't do anything to end the debate, but it does help to explain Ramsey's thinking behind the debt snowball. And you have to admit, his methods HAVE worked for a lot of people.