Paying off debt with the snowball method
Getting out of debt is one of the most freeing things you can do for your future. This plan makes it faster than you might think.
The snowball method
- List your debts from the smallest balance to the largest. Leave the mortgage for later.
- Pay the minimum on all of them, and put any extra funds toward the smallest debt.
- When it's paid off, add its payment to the next one. Then rinse and repeat. The payment grows like a snowball rolling downhill.
Quick wins keep you motivated, and motivation is what gets you to the finish.
In Dollarz
Each debt in your budget shows its payoff date. With Plus, the debt calculator lets you try a bigger payment and see how much sooner you'd be debt-free.
Stop adding new debt while you pay off the old. It's the single biggest help.