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The Snowball Method of Paying off Debt
This is a great method to getting debt-free. It helps you get momentum which keeps you motivated.
Check out Dave Ramsey's post:
When you're using the debt snowball method, interest rates don't really matter. Here's what I suggest you do, and why...
List your debts smallest to largest, by total amount owed, regardless of the interest rate.
Then, while making minimum payments on everything else, attack the smallest debt with every extra penny that you can. Once that one's gone, roll what you were paying on that over to the next debt on the list. You'll pay off debt much faster than you ever thought you could.
A small amount of extra interest paid will be nothing compared to the momentum you feel from knocking out those smaller debts one by one and then getting to throw even more money at those bigger debts when it's their turn on the chopping block.
Remember, personal finance is 80% behavior and only 20% head knowledge. This is more about momentum than math. Don't let crunching the numbers on a small amount of interest keep you from actually taking ACTION to pay off your debt.
You have what it takes. Make it happen, and trust the process! When you're debt- free, you'll be really glad you did.
Need help developing a Snowball plan? I can help.
You can master your money... and I can help!
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