How Do You Reduce Debt With The Snowball Method?
Today’s uncertain economic climate has led many of us to start thinking about how to reduce our debt burden. One way to approach paying down debt is the snowball method. A relatively simple approach, the snowball method, made popular by financial guru Dave Ramsey, gives you a step-by-step, manageable approach to paying down your debt. Gather all your existing bills. Calculate the amount per month you pay to make minimum payments on these bills. Compare this amount to your income, minus any other regular expenses (groceries, gas, utilities, etc.) Determine how much additional money you can pay on the smallest debt amount (that pesky Visa card, for example) Put all this additional money toward the smallest debt until it’s paid off, while continuing minimum payments on the other bills. When the first debt is paid, add the amount you were paying on that bill to the minimum payment you were making on the next-largest bill. Continue until bills are completely eliminated, continuing to add th
