How to get debt free with the Debt Snowball Plan

Myth: I have to pay the debt with the highest interest rate first to get out of debt quickly.

Truth: You should pay the smallest debt first to create the greatest momentum in your debt snowball.

The math seems to have moved more to pay the highest interest rate at first, but what I learned is that personal finance is 20% head knowledge and 80% behavior.You I need quick wins to to stay pumped enough to get out of debt completely. After beating the easier debts, you can start seeing results and you can start to win to reduce debt.

Debt Snowball Plan

The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gained, because all your effort is diluted. First accumulate $ 1,000 in cash in an emergency fund. Thus began intensively to get rid of all debts (excluding house) using my plan snowball debt. List your debts in order with the smallest gain or balance first. Not to deal with interest rates or terms unless two debts have similar payments, then the list of debt higher interest rates first. Not pay the debts first gives you a quick return, and you're more likely to stay with the plan.

Create a dynamic

Repeat this each time you pay the debt, so you can see how close you are to get to freedom. Keep the old paper wallpaper the bathroom in a new home with no debt. The new payment is not adding all the costs listed above are the debts that you have worked in the office of destination, and is aggravated charges, you get out of debt quickly. The remaining fees is due to the remaining payments, when you get down the snowball to that item. The levy is the total payments for example, would require a snowball, to pay for that item. In other words, this is your running total of the remaining charges.

Debt Free!

You can attack the smallest debt, still preserve the minimum payments on everything else. Do what you must focus your attention. Keep one step to the next larger bill. When the credit debt is to ensure you are ready for the next step in the child's total money makeover.

I was broken. I know how I felt scared and I know how fast I get out of debt. I know how you feel and I found out what really works is unbelievably fierce, focused intensity.