How to Pay off Debt with a Debt Snowball

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The debt snowball method is very motivating because you will start to see results quickly! To get started, organize all of your debts from the lowest balance you have to the highest balance, regardless of the interest rate they have.

Then, pay your minimum payments on each of your debts, but pay as much extra as you possible can on the lowest balance debt.  You will have to work hard to put the most money you can toward this expense until it’s gone. Don’t try to pay a little bit of extra money toward the other ones. If you have the extra money, send it all to the lowest debt on your list.

Once the first debt on your list is completely paid off, you’ll feel great. It is very motivating and seeing that debt disappear is very exciting.  Now, take the payment plus the extra amount that you were used to paying on the small debt and apply it to the next smallest debt.  You will end up with even more money at this point to send to the next debt item on your list because you will no longer owe money toward the debt you just paid off.

As you start paying off debts, you will be able to save more and more money to apply to your next debt. The amount of money you have will grow and grow (like a snowball) until you eventually reach a debt avalanche.

The debt snowball method works and will bring fast results! Not only will you have your debts paid off quickly, you will feel great doing it.

For other great ideas on getting out of debt, see these related articles:

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10 Useful Tips for Using Your Credit Cards