prosperityseeker

Today, I will teach you the method of the debt snowball to squash debt. Basically with the debt snowball, you take your smallest debt and work your fanny to pay it off. To do so, you take the creditor’s required minimum monthly payment  and  combine it with an extra payment to pay off debt quickly. Then, when you’ve paid off the smallest debt using this method you apply that entire payment to the next debt.

Let’s see the plan in action. Let’s say you have a $50.00 monthly payment that is due to Visa but you can afford to pay $125.00.  Well, you pay $125.00 to Visa and once that is paid off you send the $125.00 payment with your other monthly payment. In this case, let’s say it is $50.00 to MasterCard. As you can see, you will then  start sending MasterCard $175.00 . Then once MasterCard is paid off you continue until all your bills are paid off. 

The benefits of the debt snowball are many. Not only is it invigorating and fun to watch those loan balances go down with time but it the snowball picks up steam and squashing debt like crazy. The debt snowball is your ticket to financial freedom. By using it, you are basically forcing your money to work smarter for you.

Plus, as your debt snowball gets bigger, your debt will shrink even faster and faster. To me, the debt snowball is a great way to beat credit card debt.  Give it a try and you’ll be pleasantly surprised that the debt snowball not only works, it works to beat credit card debt quickly and painlessly.

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