While I understand about Dave’s argument of human behavior, your suggestion of every $1,000 works just as good with the rate route. Not only that, but Dave’s program is outdated as far as I see it. His numbers are outdated. He doesn’t take into account online tools to help with people’s personal financial stuff. His savings rate is based on the old philosophy, though excluding SSA benefits, but still under the old 15% IRA rules that are no longer in play. For me, I require 25% saving rate, not 15% saving rate. His plan is also too risk adverse which I call the cash flow method and it’s not good enough as it falls victim to inflation and taxation risks. As for him saying to use those with 12%+ historic gains of mutual funds, while track history does play a part, it’s out the window when a new manager takes over. Not only that, but I have no trust for any mutual fund managers other than what I have to give in order to take full advantage of the employer’s matching policy. I instead do my own investment picking and decisions, which I have trended at least 1% above respective benchmarks with my own pickings, though 2010, I was about 15% above benchmarks.

The only reason why I would follow the principle route for debt elimination is if I was in a situation that I HAVE TO free up cash flow demands. Otherwise, I will follow with the rate route using the online banking tools of scheduling payments and what not in addition to what I do within Excel.

As for getting rid of debt, getting rid of debt in itself doesn’t motivate me, but rather the numbers of how much further out of debt I am is what motivate me, so the cash flow method of Dave’s wouldn’t motivate me anyhow.

I did have my wife and myself go through Dave’s program, though not so much to learn the specifics, but rather more so for my wife to realize what I had been doing financially was not something just made up in my head, but rather it was the real deal. As we went through the course, the real life experiences they described in the course had hit home with my wife and me as we went through many of such experiences. It was only then when my wife finally accepted what I had been doing is the real deal even though she really didn’t like it. She didn’t like it cause it blew her whole idea of just spending and blowing money was something that she would be able to do all her life, but after having been through the course, she also realized we have to make sacrifices over a time period in order to be able to live like no one else.

http://www.nworesistance.com/debt-slavery-explained.html

Are you finding yourself feeling frustrated or overwhelmed with paying down a large debt? As I have recently become debt free myself, I understand completely. Our last debt was approximately $9,000, and it took us what seemed like forever to eliminat…

Another helpful tip is to track your net worth. A lot of people don’t do this, but I find that it helps A LOT. Every month as I pay off my debt, my net worth increases. Even if it’s just a small amount, it makes me feel better about my financial situation.

I’ve got this $30,000 student loan debt which is numbing my mind… but I just don’t want to pay it off since the interest is only 2.6%, and I’m getting a blended risk free return of 4.1% on my savings.

What to do??