How Does Debt Snowball work?
Debt snowballing is a strategy used to pay off debts faster. If you’ve never heard of it, here’s how it works…
You start off by paying small debts as quickly as possible. Focus your extra money on the smallest balance you owe. That way if you’re paying on 7 accounts every month, but can completely pay off 3 of them within a year, you can cut the number of bills you have to keep track of almost in half.
Each time you pay off a debt, you can take the money from what you were supposed to put towards the smaller debts, and then target it towards the larger debts. That way you get out of the “minimum” payment trap and can actually start to eliminate debt.