Snowballing Debt, Making It Pay

• List your debts from lowest to highest (ascending order.) This allows you to determine which of your debts you will tackle first. Resolving the lowest debts first is the main concept of the debt snowball method. No fancy debt snowball forms are required, just use the totals and put them in ascending order.
• Pay the minimum payment amount of all the debts you have. The debt snowball method ensures that you maintain your good credit standing. The ultimate goal is to be debt free - debt snowball plans let you do that, one step at a time by meeting all your financial obligations but concentrating on completely resolving one at a time. The method is slow, but steady.
• Taking your current budget into account, add a little extra amount on the minimum payment required of your smallest debt. For example, if your smallest debt obliges you to pay $100 a month, try to make that $150. Note all of these numbers on your debt snowball worksheet as you will need the figures from one step to prepare to take the next one.
• When the first debt is resolved, proceed to the second. Apply the amount you used to resolve the first debt to the second, with as much additional money as you can comfortably add. Since you are working on one less debt than before, the theory is that the payment will be no greater hardship that you are used to facing, but it will do more for you.
• Repeat this process until you are working on your largest debt. Although this free debt snowball technique takes discipline and time, it does work.

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