How to Use a Debt Snowball to Propel Yourself Towards Debt Freedom

Have you decided that it's time to kick debt out of your life? Great! It's a simple process to get rid of debt forever; within a few years, you can be debt free! Get your debt snowball rolling, and you can do it!

The process of snowballing your debt is simple. (That doesn't mean it's easy...but you can do it!) First, why do we call it a snowball? Well, imagine those cartoons of small snowballs that begin rolling down a large hill or a mountain.

As the snowball rolls, it picks up more and more snow, so that by the time it reaches the bottom, it's a gigantic ball big enough to mow down or consume anything in its path. This is what we want your money to do for you.

The first step in creating your debt snowball is to make a list of all of your debts. Include car loans, student loans, consumer debt (i.e., credit cards), medical bills, home equity loans, etc.

Everything except your first mortgage is going to be gone, gone, gone! Now, line these debts up in order from the smallest balance to the largest. This is the order in which you're going to pay them off.

Ignore interest rates. Yes, the financial gurus tell us to get rid of high-interest debt first, but we're going for a lot of victories fast here. Please trust me on this! You'll be excited as you get that snowball rolling.

Now, the first debt on your list is your snowball target. Every single other debt on the list gets the minimum monthly payment for now.

The debt on the top of the list gets its minimum payment plus every spare cent you can throw at it. Pay it off as fast as you can. When it's gone (which should be soon, because it's your smallest), you take the money you've been paying to it every month and apply it to the next debt on the list.

Now, debt #2 is getting its own minimum payment, debt #1's minimum payment, and every spare cent you can gather towards it.

If you keep this system going on down the list of debts, your debt snowball is rolling, and after a few debts, you'll be amazed at how much money you're able to contribute to eliminating your debt!

Join our free support community for people who are working to get out of debt at Debt Free Weirdos It's weird to be Debt Free, start being weird today!

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