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Debt Snowball

Money & WealthBeginner
30 min monthly5 steps0 practitioners

Pay off debts from smallest to largest, regardless of interest rate. The psychological wins from eliminating debts build unstoppable momentum.

Steps

1

List every debt: amount owed, minimum payment, and interest rate

2

Pay minimums on everything except the smallest debt

3

Throw every extra dollar at the smallest debt until it's gone

4

Roll that payment into the next smallest debt — your snowball grows

5

Celebrate each debt elimination — momentum is the point

#debt#budgeting#momentum#freedom

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