The Debt Snowball is hands-down the best way to get out of debt. It’s simple, focused, and designed to give you the momentum you need to win with money. Here’s how it works:
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List all your debts (except your mortgage) from smallest to largest. Don’t worry about the interest rates—just focus on the amounts owed.
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Make minimum payments on everything except the smallest debt each month.
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Attack the smallest debt with every extra dollar you can find. Whether it’s side hustle income, garage sale money, or cutting out your coffee runs, throw it all at that smallest balance.
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Once you pay off the smallest debt, roll that payment into the next debt on your list. This creates a snowball effect, and with each debt you pay off, you free up even more money to tackle the next one.
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Repeat the process until every debt is gone!
Just like a snowball gains speed and size as it rolls downhill, you’ll gain momentum and confidence as you knock out one debt after another. There’s nothing quite like the feeling of crossing that last debt off your list and shouting, “I’m debt-free!”
Need help tracking your progress? Use our handy Debt Snowball Calculator to see just how quickly you can become debt-free.
Stick with it, stay intense, and you’ll be on your way to financial freedom in no time!