Debt Snowball: A method of debt repayment
So let’s say you have a credit card for you...but you’re struggling to understand the benefits of paying it off in full every month. Don’t worry — we’ve been there. There’s more you can do than just paying the minimums to decrease that debt and get back to focusing on more important things in life, like these puppies. The solution we have to offer here is called the “debt snowball”. Using this method you’ll have lower interest rates and pay off your credit card faster and more efficiently than you would have ever imagined. See below:
Step 1: List your debts from smallest to largest.
Step 2: Make minimum payments on all your debts except the smallest.
Step 3: Pay as much as possible on your smallest debt.
Step 4: Repeat until each debt is paid in full.
GET BETTER AT IT
Watch millennial expert Stephanie O’Connell explain the debt snowball in more detail here.
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