The New Debt Elimination Method To Eliminate Debt Very Quickly

Snow Ball Debt Elimination Method

Debt elimination is a goal that many people want and need to achieve. The ease and convenience with which we previously have charged purchases have been replaced by the stress and anxiety of debts that are approaching or surpassed unmanageably. This unfortunate position has compelled many people to seek professional assistance for debt elimination methods that can turn their situation around.

There are many companies and professional counselors to assist people with debt elimination. A professional counselor will evaluate the client’s financial situation in order to devise a plan to enable the client to reach the debt elimination goal. There are several methods that can be implemented in the plan for the client. One method for eliminating debt is the Snowball Method Debt Elimination method.

The Snowball Method is similar in theory to the image the name conjures. Basically, this method involves targeting the smallest debts to payoff first working up to the larger debts. The rate at which the debts are paid off gains speed as the program is followed, like a snowball rolling downhill.

Snowball Debt Elimination Method Are as Follows:

1) Make a List of All Debts

List your debts from the smallest balance to the largest which allows you to clearly see how the plan will reach the goal.

2) Make the Minimum Payment

The required minimum monthly payment that is stated on your monthly bill or statement should be paid on time. Once you have written down all your liabilities and the monthly budget has been established, make a pact with yourself to paying the bills on time and for the minimum required amount. As long as you don’t increase the debt by continuing to charge on the accounts, this will slowly begin to reduce all your debts.

3) Extra Payment Will Get The Debtors Away

Once all the minimum payments have been made, assess your budget to locate any extra money that can be added to the payment on the smallest debt. Pay the excess in addition to the minimum payment on the smallest debt. This will reduce the amount of this debt much more rapidly than paying the minimum payment alone. This will be the first debt eliminated.

4) Rinse and Repeat

Once the smallest debt has been paid off, use the money that would have gone to that monthly bill to add to the minimum payment towards the next debt on the list. The payment on the next debt will be the sum of:

a) The original monthly minimum payment
b) The monthly minimum payment of the previously eliminated debt
c) Making an extra payment on your smallest debt.

In this manner, the amount that is available to pay on each debt will increase as the previous debt is eliminated. This enables you to pay the higher debts much faster which results in the “snowball” affect. This debt elimination method will not only result in paying the debts off faster, but will save a lot of money by the time the plan is completed.