Post by Lisa Baldwin on Dec 8, 2005 20:22:56 GMT -5
The Snowball is a very simple idea.
1. Catch up on past due bills.
2. Create zero budget (a budget where every dollar is allocated)
3. Agree to create NO NEW DEBT.
4. Build up a $1000 emergency fund, so that you won't need to get credit.
5. ELIMINATE THE SNOWBALL!
Start with the smallest balance first, make only the minimum payments on the rest. When debt #1 is paid off, take the payments you WERE making there and add them to the payment on the next sized debt.
Some like to rank their debt in a prioritized list based on amount and interest rate. I personally feel this only saves you a few bucks and it is more motivating to work the snowball smallest to largest. So that you may see success earlier!
Post your total starting snowball amount here! And come back to let us know how your doing!
1. Catch up on past due bills.
2. Create zero budget (a budget where every dollar is allocated)
3. Agree to create NO NEW DEBT.
4. Build up a $1000 emergency fund, so that you won't need to get credit.
5. ELIMINATE THE SNOWBALL!
Start with the smallest balance first, make only the minimum payments on the rest. When debt #1 is paid off, take the payments you WERE making there and add them to the payment on the next sized debt.
Some like to rank their debt in a prioritized list based on amount and interest rate. I personally feel this only saves you a few bucks and it is more motivating to work the snowball smallest to largest. So that you may see success earlier!
Post your total starting snowball amount here! And come back to let us know how your doing!
