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It’s time. You have learned how to control your spending, you’ve set aside an emergency fund, and now you are staring at your mountain of debt. Yes, it can feel intimidating, but like anything in life, the best way to face your fears is head on.
The reality is that debt controls
What Is The Debt Snowball Method?
The method that I am referring to is a concept that Dave Ramsey introduced to the world decades ago, and it has become one of the most well-known ways to gain momentum in paying off debt. The concept is simple: focus on one debt at a time.
So how do you decide which debt to start with?
- List all of your debt in order of balance, lowest to highest.
- Start with the smallest balance first. Throw everything that you can muster at this debt.
- Pay only the minimum requirement on any other debt. This will allow you to take any “extra” money that you would normally pay towards the other debts and put it towards the smallest debt.
- When the original smallest debt is gone, move to the current smallest debt. Repeat until you are debt-free!
Imagine how good it would feel to eliminate a bill altogether. You would want to try to get rid of the next one as quickly as possible, right?! That hit of adrenaline is what makes the debt snowball so effective and helps you turn a small snowball into a boulder.
If you are excited to start eliminating your debt, I have a Debt Free Gameplan that breaks down the steps that I have taken to effectively dig out of our debt. It includes a debt snowball tracker to make this process simple! Grab it from my Freebies Library, or get the password here:
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Are You Ready For The Next Step?