TawnyaAre you struggling to pay off debt? Can you never seem to get ahead?
The debt snowball method is what I used to pay off $28k in 8 months, and I wanted to share with you what it is so you can try it. This stuff works!
#1: Get on a budget and see where you can cut spending. This needs to be your first step if you are serious about getting out of debt. You can get my free budget worksheet at themoneylifecoach.com or link in Bio.
#2: List out your debts, smallest to largest (don’t worry about interest rates because this doesn’t matter very much if you are paying off debts fast). Look up your debts online or call for a payoff amount, and list them out.
#3 Pay as much as you can on the smallest debt and ONLY pay minimums on the rest. Most people get caught up putting some money over here and some there. You should put as much as you can on that smallest first to get it knocked out.
#4 Once the smallest is paid off, move to the next, paying only minimums on everything but the smallest one….
And that’s it! It’s not overly complicated and it shouldn’t have to be. Be committed and willing to try something different if you want a different result.
This strategy has worked for hundreds of thousands of families and it can and WILL work for you if you commit to it.
One side note, is to remember to only focus on paying off debt while you’re doing this. That means stop saving, stop putting money away for retirement, stop eating out as much as possible, and planning vacations temporarily so you can pay off your debt as fast as possible.
And I think this goes without saying, but you MUST stop taking on new debt if you want to get out of debt.
You must commit to paying cash and not taking on new loans and using credit if you are really serious about living debt-free.
Living debt-free is one of the best decisions I’ve ever made, and this feeling is freeing and empowering.
Let me know how I can help you get there too.
