Do You Understand How to Use the Debt Snowball Method?
If you want to escape the constant pressure of financial stress and worries, then make a plan to get out of debt. The amount of interest you are paying on borrowed money is likely the biggest expense in your budget when all added together. It does not have to be this way. Make a plan using the debt snowball method or what some call the “rollover method”. Let me explain.
First, make a list of all the consumer debts you currently owe. That would be any student loans, credit cards, auto loans, store accounts, personal loans from family or friends. Let’s leave the mortgage out of the picture for now. Now, there are two ways to list these debts. The most popular method is to list the smallest debt first to the highest balance last. Another method is to list the debts from the highest interest you are paying to the lowest interest. Using the popular method, as each smaller debt is paid off, the freed-up payment amount is then applied to the next larger debt, and so on until all debts are paid off.
This rollover method can save you a ton of money in interest charges, and get you debt free in a very short period of time especially as you add more and more payments toward the accelerated debt payoff plan.
Crown has a free Snowball Debt Calculator to help you determine how much you can apply towards this plan and how quickly you can become debt free.
Now that you have listed all of your debts and made a plan for how to use the Snowball Method, you need to begin and then persevere. Ask the Lord to give you the focus and self-control you need to make daily progress. It is the little steps that will lead you to the final destination.
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