October 2020 Financial Minute
The Debt Snowball Method
Us the Debt Snowball Method to accelerate your way to financial freedom!
No matter if you or your family is facing a small amount of debt or a large amount of debt, getting debt free can seem impossible. There are many strategies that you can implement to help you start to reduce this debt; one of the most popular methods is the Debt Snowball Method. The debt snowball method starts with you listing out all of your debts (except for your mortgage), with their remaining balance minimum payment. Once you have all your debt listed out, the “snowball method” starts when you begin paying the minimum payment on all your debt, except for the smallest amount. The goal is to pay off debt in order of smallest to largest, gaining momentum as you knock out each balance. In order to pay your smallest debt off, budget how much you can pay every month towards paying off as much debt as possible. Once that debt is paid off, “roll” your payments into your new smallest debt, until it is paid off. You then repeat this strategy, creating a snowball effect, until all your debts are paid off!
Want a little bit more advice and strategy on the Debt Snowball Method, check out this article
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How Dave Ramsey's Debt Snowball method ACTUALLY WORKED for us! (with PROOF + Account Screenshots) | $125K In this video we're actually sharing the final acco...
