Understanding the Debt Snowball
The debt snowball method is a great way to pay off debt, especially if you have several different debts. Put simply, it's a plan that helps you focus on one debt at a time until that individual debt is G-O-N-E. Then you move on to the next one in the list, repeating the process until you can proudly shout "I'm debt free!". Why It's Called a Debt Snowball When something snowballs, it quickly gains momentum or increases as it goes. Naturally you don't want that to happen to the debts themselves! Your debt, of course, goes away as you work through it. A more appropriate name for this plan might be the payment snowball method, because it's the payments you send toward your debt that snowball that increase, but that…
