Debt Snowball: 5 Options

debt snowball

For anyone trying to get out of debt, the debt snowball method has become the choice of many to tackle their debt. This shouldn’t be a surprise as it is a straightforward and easy to follow method that works. While the basics are the same, there are a variety of different debt snowball approaches that people follow.

The basics of the snowball debt plan are pretty easy to understand. Instead of looking at the long-term goal of trying to pay down all of the debts at once, the person in debt instead concentrate on individual short-term goals of a single debt at a time. They pay as much as they can on this particular debt while paying the minimum amount on the other debts so that they ca

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6 Responses to Debt Snowball: 5 Options

  1. baselle says:

    You also want to remember that you can switch tactics as you pay off the individual loans. For instance, the first debt I paid off was the secured debt, then the smallest, then the most hated, then I paid off the one that was 0% to lock in whatever advantage I had transferring part of the debt, then I paid off what was left. It was a grab-bag, but perfect is the enemy of the good in this case.

  2. Wowitsawonderfullife says:

    This is an extremely valuable article. Wish I wrote it myself! Excellent summary of the emotional value for debt repayment

  3. Amber says:

    I have been debt free once time in my life for less than a year, I’m embarrass to say. However, I used the snowball method. First I tackled the accounts with the smallest debt, after paying those off, I tackled the most annoying and finally the last was paid. Doing this gave me a sense of accomplishment.
    Unfortunately, I am in the process of eliminating my debt using the same method and I’m proud to say CC1 will be paid off by Jan. 20th

    Great article

  4. Diolla says:

    One other advantage of the Smallest balance method, assuming there are a few little ones in there, is that they are paid off quickly giving you a little more money to focus on the bigger ones and growing the snowball. Also there is a psychological boost of paying fewer bills every month. The hole doesn’t feel as deep when you have fewer payments going out.

  5. Pingback: Carnival of Financial Planning – Edition #220 – January 20, 2012 | Credit, Eh - The Credit Card & Personal Finance Blog of CreditCardsCanada.ca

  6. Jerry Robinson says:

    Smooth writing.
    I an old man and got myself into Dept still digging out .
    Thanks that was smooth . Though I have been paying down seems like years .just maybe another year and a half

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