How to Rock the Debt Snowball

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The Ultimate Debt Repayment System - Debt Snowball

The Ultimate Debt Repayment System


How to use the Debt Snowball Method

Being in debt is one of the worst situations you can be in. It takes a toll on a person’s life with all the sleepless nights, strained relationships, and being stressed out.  Your feeling helpless, constantly trying to figure out how you are going to pay the bills, it never leaves your mind.  

I’ve been there, it is not an easy road to dig yourself out of debt. Many people try to get out of debt, but life happens. They find themselves right back where they started.

If you are sick of being in debt and are committed to paying off your debt, then the debt snowball method is the way to go.

What is a Debt Snowball?  

The Debt Snowball method of paying off debt is where you attack the debt with the lowest balance first by putting any extra money you can gather on that bill.

Once the bill with the lowest balance is paid, you stack the money you were paying on that bill to the minimum payment on the next lowest balance debt and so on.

What I like about the Snowball Debt method is that you see the results of your hard work faster than other methods. Just seeing that first debt finally paid off is so encouraging.  It will show you that you CAN do it and it will help to keep you motivated until you are debt free!!


How to Set Up Your Debt Snowball

First you need to gather all your bills together. Then sort your bills in order of lowest balance first to highest balance last.

Next you need to find a method to track your debt and progress. You can do this on paper or create a spreadsheet, you can even make a nice visual graph to keep you motivated as you see your debt dwindle.  

List your debt in order of lowest to highest. You also should record the minimum payment due monthly for each of your bill and the interest rate you are being charged for each bill.

After you have recorded your debt, you need to total the minimum monthly payments of all your debt.  

Making the Debt Snowball Work for You

Now you are going to have to create or rework your budget. Your goal will be to look for ways to not only pay the total minimum payments, but to squeeze out any extra money to add as much as you can to your debt snowball.  

You should look for ways to cut cost by meal planning, and saving money on groceries. Also, you will need to cut out any non-essential spending from your budget.  This is not forever, but you need to do this to make paying off your debt a priority.  

More Ways to Contribute

Other things you can do is earn a bit of extra money on the side to help maximize your debt snowball strategy. You can complete surveys, use money saving apps, sell stuff that you do not need.

Other options are create a blog, or start selling on Amazon or Ebay to bring in extra cash. This could even eventually earn a full-time income from these low-cost start-ups.

One other way to contribute to your debt snowball is to add “snowflakes” to your debt. This would be any found money that may come your way.  This could be in the form of cash gifts, income tax returns or employee bonuses. Basically any other cash that you were not expecting to get.

Final Words 

The key to the debt snowball is to contribute as much as you can to your debt.  Once the first debt is gone, you will have that much more to throw at the next debt and so on.

Getting out of debt is not going to be easy, but with determination and a bit of work, you CAN do it. Once you see that first debt finally paid, you will get so encouraged. And you will prove to yourself that you can finally rid yourself of debt. You will want keep it up. The harder you work at it, the faster you will have the debt free life you deserve.

Please leave a comment if you have more ideas on how you have made the debt snowball method work for you and to encourage others.

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  1. //

    As Dave Ramsey would say, it’s all about “gazelle intensity”! This is a great plan to work your way out of debt – as long as it is a priority for you and you throw as much as possible to the payments (as you mentioned above). This is definitely worth considering for anyone who has debt and would love the freedom of getting it all paid off!
    Brad, Financial Coach recently posted…If you want to build wealth, stop doing thisMy Profile

    1. //

      Thank you Brad. Yes, the faster it’s paid off, the sooner you can get on with you life.

  2. //

    2016 was the year where I should have made a proper plan to reduce my debt. However, I failed. But this coming year, I will need a real plan to reduce my debt by more than 50 percent. I have read each and every paragraph very carefully to understand how I can get over with my debts. Well, my debts are small but they are still debts, and I want to get rid of them. They keep on pressuring me each day; I have to pay them sooner, but I’m setting up a new business where I will able to make more money and hopefully pay at least 50 percent of the debt amount.

    1. //

      Becoming debt free will definitely remove the pressure from your life. I plan on working on many more posts, freebies and printables to help people in their debt free journey so check in regularly. I would also love to get updates on how you are doing!!

  3. //

    In my opinion small victories do matter and paying off your smallest debt first gives you a sense of achievement. Calculate your monthly expense and make a budget including your income with your spending. I think it’s also a good idea to have an emergency fund available, because when your eliminating the debts, you don’t want to add to it. So if you keep using your credit card for all the emergencies, you will never get rid of your debt.

    1. //

      I agree Michele, the small victories are what is going to keep you going and give you encouragement in your journey!!

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