There are a few different methods that most people use to pay off debt, The Snowball Method, and the Interest Rate Method. Picking the best method really depends on your personality. If you are someone who loves to check items off a list quickly, then the Debt Repayment Snowball Method might be your best choice. It basically involves listing all of your debt amounts from smallest to largest and then paying the off in that order, without regarding interest rates. Here are our tips for using this method to start checking debts off your list quickly.
- Check out our Financial Freedom Plan, and then head over and read about our Debt Repayment Plan and print out the printables to list your debt. List every single debt starting with the smallest amount up to the largest amount. It helps if you print out our entire Family Binder as well to keep your home organized.
- After you save your first $1,500 (Step #3 of our Financial Freedom Plan) then start applying any extra money towards paying off the smallest debt first and then work your way up the list.
- One thing we did to become debt free faster with the snowball method was to work our top side hustles that helped us earn extra income quickly. Check out our 50+ Top Side Hustles for getting out of debt.
- Decrease spending so you can put more towards debt. You might want to start our 31 Day Spending Freeze Challenge series to help you get out of debt faster by spending less.
Check out my favorite snowball method calculator from Crown Financial Ministries.
Comment below and let us know if you prefer the snowball method over the interest rate method!
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