{"id":49091,"date":"2023-11-24T12:28:05","date_gmt":"2023-11-24T20:28:05","guid":{"rendered":"https:\/\/financer.com\/?page_id=49091"},"modified":"2024-05-06T07:57:17","modified_gmt":"2024-05-06T14:57:17","slug":"debt-snowball-method","status":"publish","type":"page","link":"https:\/\/financer.com\/loans\/glossary\/debt-snowball-method\/","title":{"rendered":"What is the Debt Snowball Method?"},"content":{"rendered":"\n
The Debt Snowball Method is a strategy for paying off debt, where you start with the smallest debts and work up to the largest, ignoring interest rates.<\/p>\n\n\n\n
As you pay off each smaller debt, you redirect the funds you were using for those payments to the next larger debt, creating a ‘snowball’ effect that accelerates as you go. <\/p>\n\n\n\n
This approach can offer psychological wins, providing motivation to continue paying down debt as you see individual balances disappear.<\/strong><\/p>\n\n\n\n The debt snowball method was popularized by personal finance expert Dave Ramsey<\/a>, but has been used by consumers for many years to methodically reduce and eliminate debt. <\/p>\n\n\n\n \ud83d\udca1Read More:<\/strong> How to Refinance a Personal Loan: 7 Easy Steps<\/a><\/p>\n\n\nImportant Note:<\/h3>While the Debt Snowball method offers psychological benefits by focusing on small, quick wins, it’s not the most cost-effective strategy due to potentially higher interest costs.\nIt prioritizes smaller debts over high-interest ones. For those seeking to minimize interest, methods like the Debt Avalanche<\/a> might be more financially efficient, despite the Debt Snowball’s motivational advantages.<\/div>\n\n\n
How the Debt Snowball Method Works in Five Easy Steps:<\/h2>\n\n\n\n
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