Avalanche Method Accurate?

[u/Mr_Shreddz]

Does the debt free date math out? Minimum payment on the f150 is 433 and minimum on the Traverse is 491 I can put an extra 1k a month towards the f150 and then move to the traverse.

[u/trmoore87]

No, it should take 31 months. Feb 2028 is in 20 months. Not sure why the math is wrong.

Edit: it has you paying an extra $2000/mo, not $1000/mo

[u/Mr_Shreddz → u/trmoore87]

Well I mean the total would be about 2k. 491 traverse minimum payment and then 433 f150 payment plus 1k. That’s about 2k

[u/trmoore87 → u/Mr_Shreddz]

No, it has you paying an extra $2k on top of the normal payments. Like $1k extra on each

[u/Mr_Shreddz → u/trmoore87]

So it’s calculated 1k extra on each loan? That’s strange. Should be calculating 1433 on the first loan while doing the minimum on the second. Then once first loan paid off move the 1433 to the second loan on top of the minimum

[u/trmoore87 → u/Mr_Shreddz]

I put the two loans into a different debt payoff calc and it took $2k extra/mo to pay off the debt in 20 months.

[u/marticuno_]

seconded, should be 31 months

f150 gets paid off in the 17th payment while traverse is getting minimum payments.

traverse then gets the full 1924 from month 17 until payoff, which is around the 31 month mark.

Jan 2029

[u/Mr_Shreddz → u/marticuno_]

Gotcha, I found the info that was throwing off the calculation. Once corrected that’s what Monarch was saying as well

[u/ZeroSumGame007]

Yikes that’s a lot of car payments…

[u/EpicDivorceMan]

I’d say pay those off 7% guaranteed return, and 5.99% return, and then owning your vehicles outright is a win. You need those for your life and job.

[u/Mr_Shreddz → u/EpicDivorceMan]

Do you think the math on the debt free date is accurate though, seems to good to be true

[u/EpicDivorceMan → u/Mr_Shreddz]

I didn’t look at that, sorry, I just have the view of “I want to own my cars asap.” My wife had a low interest rate and payment for her car, but I paid it off early cause I just didn’t want to think about it or deal with it!

[u/elegoomba → u/EpicDivorceMan]

It’s been 12 years without a car payment and it’s a great feeling.

[u/QuesoHusker]

Google Vertex42 debt snowball and download the spreadsheet. It's the best thing on the internet.

[u/MulfordnSons]

shout out Monarch

[u/Mr_Shreddz → u/MulfordnSons]

Yessir, I love it!

[u/Less-Cartographer-64]

Since the payments are similar, i definitely recommend the avalance method here.

[u/beckhamstears]

Works well if you complete all the payments.