Personal Finance Buzz

Credit card debt is wrecking people’s lives as we speak. The lure of the “easy money” ruins a lot of families because credit card holders are too weak to refrain from buying yet another thing they really don’t need. So what can you do if you are staring in the face of debt? Have you tried implementing the Debt Snowball method?

Explanation of Dave Ramsey's Debt Snowball with illustration and links to related debt reduction resources

The power of debt snowball in action, as One Caveman shares his debt reduction story.

I got an email from my little sister the other day asking a question that gets asked quite often…“Which debt should I pay off first?” In most situations I recommend Dave Ramsey’s Debt Snowball method of paying off the debts from smallest to largest, starting with the lowest balance first. The reason being that many people need the “small victory” of getting a debt paid off to help keep them motivated.

The excess amounts go to the smallest balance. Once that is paid off, add the excess plus the minimum payment on the smallest to the second smallest. Continue this process over and over until all your debt is GONE.

This article is all about How to work the debt snowball