The debt snowball is a popular term in the “get out of debt” crowd. The term was coined by Dave Ramsey and is a method of payingg your debt.
How It Works
The idea is to line up your debts, smallest to largest. You attack each debt, starting with the smallest. Once you pay off your smallest debt, you move to the next smallest, and so forth until all debt is paid off.
The reason for such a method is that the idea is you gain emotional and psychological motivation and momentum as you pay off debts. Simply put, it feels good to get rid of a debt, and you’re excited and motivated to continue. This strategy is very effective.
I encourage you to take the time and map out your debt snowball game plan according to the method outlined above. I would imagine if you are determined to pay off your debt, this is one of the best ways to go about it. To help you, use budgeting software and other tools to track your finances and pay off your debt.
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