S is for the Snowball Method and How it Works

S is for the Snowball Method and How it Works

What is the snowball method?

The debt-snowball method is a debt-reduction strategy, used when an individual owes on more than one account. The method encourages paying off the smallest balance first while paying the minimum payment on larger debts. Once the smallest debt is gone,  then you would move to the next debt, and so forth until the largest debt is paid off.

The Snowball Method to Paying Off Debt. Where to Start?

Try this simple method for paying off credit cards…

  Step 1

Make a list of all your credit cards. Put them in order from the highest balance to the smallest balance.

Step 2

To pay off your cards, start with the card that has the smallest balance and pay off as much as you can on that card while paying the minimums on the other cards.

 Step 3

Once the card with the smallest balance is paid off, take the amount you were paying towards that card and apply it to the card with the next lowest balance.

 Step 4

 Persistence does pay off so keep on “keeping” on until ALL the cards are paid off.
 
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