HOW TO USE THE DEBT SNOWBALL METHOD TO PAY OFF LARGE DEBT
Ready to start the
debt snowball method
? Make sure you grab your budgeting printables here. There is a
free printable debt snowball worksheet
where you can list all of your debts in one place!
HOW TO USE THE DEBT SNOWBALL METHOD TO PAY OFF DEBT FAST LIST ALL OF YOUR DEBTS FROM SMALLEST TO LARGEST
DON’T GROUP DEBT BY CATEGORIES
You might be tempted to lump “student loans” or “credit cards” into one section of your debt snowball.
SET SMALL GOALS FOR LARGE LOANS
If for some reason you have a 363K loan, that’s
broken up into small chunks, you can set your own goals to stay motivated!
MAKE A BUDGET
When my husband and I were ready to pay off debt, our excitement quickly turned to discouragement because our budgeting skills were less than perfect.
CUT YOUR EXPENSES
Once you get your budget in order, you will be able to see where you can cut your expenses to put more cash to the debt snowball each month.
BOOST YOUR INCOME
It might be time to get a side hustle, ask for a raise, or make that job change you’ve been thinking about to boost your income!
PAY MINIMUM PAYMENTS (ALL EXTRA GOES TO DEBT)
Once the smallest debt is paid, you will roll that minimum payment plus all extra money into the next smallest debt until that one is paid.
DEBT SNOWBALL EXCEPTIONS
If you have any unpaid taxes, or an old debt that you are being sued for,
just get it out of your life
IGNORE INTEREST RATES
The point of the debt snowball method is to change your behavior, stay motivated, and see progress fast.
The debt snowball method works because it breaks down an overwhelming task into small, manageable chunks.
For more stories like this, visit: makingfrugalfun.com
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