I always recommend the Debt Snowball Method when getting out of debt. At first this will not make sense – you are going to ignore interest rates! Say what?! The reason we ignore interest rates is because interest rates have to do with math, and math isn’t your problem. It is your behavior with money that needs to change – not the math.

The Debt Snowball method works

every time because it helps us

change our behavior about money!

Step 1

Line up all of your debts (except the mortgage) from smallest balance to largest balance – ignoring interest rates. Next, find what your minimum payment is going to be for each one. Then, allocate from your Budget any extra money you can throw at the smallest debt.

debt snowball vs debt avalanche

Step 2

You are going to ATTACK the smallest one and get it out of your life forever! This is where the behavior change will come into play – you are finally going to see progress in your debt payoff. Next, add what you were paying from the smallest debt and roll that into the next one on your list. The Snowball rolls over and picks up snow (money) to attack the next debt!

debt snowball vs debt avalanche

Step 3

Your Debt Snowball is going to continue to pick up more momentum and by the time you get to your last debt, you’ll be CRUSHING the largest with all the momentum you had from all your previous debts!

debt snowball vs debt avalanche

Are there Exceptions to the Debt Snowball Order?

Yes! Life would be boring if there wasn’t an exception, right?

If you owe the IRS, move them up to the top of your Snowball

You don’t want to delay paying these guys because they’ll start taking money out of your check before you even know it. Rule of thumb: IRS doesn’t negotiate (well), therefore just pay them off as quickly as possible.

Are you ready to start attacking your Debt using the Debt Snowball method right now!? The answer is Yes! Click the Button below to get your own Debt Snowball Form  😉