Cascading vs Snowball Debt Systems

A Cummuta vs Ramsey Debt System Comparison

If you are wondering about the differences and similarities of the cascading vs  snowball debt systems wonder no more.  Both methods are very similar, except for two major differences, however they both work well as long as you have the discipline and motivation to stick to one of these programs. Keep in mind that not all the steps might apply to everyone.  Let's take a look at  Cummuta vs Ramsey two major differences:

The cascading debt elimination system, which is part of John Cummuta'sTransforming Debt Into Wealth® program promotes starting a savings plan after all your debts are paid off.  This system also favors  paying off you mortgage along with the rest of your debts.

Dave Ramsey's snowball system, which is incorporated in his seven baby steps included in his Financial Peace book, encourages people to start a savings plan as the very first step even before you start paying off your debts.  Ramsey also advocates to start paying off your mortgage later in the program.

Since sometimes emergencies happen without warning, extra money that you are using to pay off the first debt might be used to resolve your emergency, thus setting back your debt elimination plan.  Hence, it seems logical to save funds before you start your debt elimination plan.

If you are still undecided about the cascading vs snowball debt systems, consider this:  saving money and/or paying off the morgage at the beggining or at the end of your debt termination program depends on your particular situation and sometimes it is a personal choice.