The Snowball Method: A Simple Strategy for Paying Off Debt
The debt snowball method is an effective strategy to eliminate your debt one step at a time. By focusing on your smallest debts first, you build momentum, which can motivate you to tackle larger debts. Here’s how to use the snowball method to get out of debt.
List all debts in order from smallest to largest balance.
Make minimum payments on all debts except the smallest.
Put any extra funds toward paying off the smallest debt as quickly as possible.
Once the smallest debt is paid off, move to the next smallest debt and repeat the process.
Celebrate each milestone to stay motivated on your journey to becoming debt-free.