UPDATE: This is the same debt snowball technique my family and I used to pay off over $90,000 of consumer debt in less than two years!
The Debt Snowball is a popular debt reduction technique recommended by many financial gurus in the industry. I first learned about it by reading the book The Total Money Makeover by author Dave Ramsey. If you are serious about taking control of your debt, instead of letting it control you, here’s a step-by-step guide on how to pay it all off.
Update: Be sure to check out my new FREE debt snowball spreadsheet calculator to help you keep track of your progress as you work your way through the debt snowball process!
List out your different loans, credit cards, medical bills, and other debts down the side of a piece of scrap paper, or even better a computer spreadsheet. Make sure you include the remaining balance and interest rate of each debt next to its name. The sight of all your debts together isn’t easy on the eyes but it can be a great motivator to push you in to paying it down.
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Too Much Debt? Download our free Trees Full of Money Debt Snowball Calculator and see how quickly you can pay off your debt.