Daily Juice 023 – Debt “Snowballing”

Daily Juice 023 – Debt “Snowballing”

Posted by Anna Sergunina on Jul 4, 2016
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In previous episodes, we discussed how to decide what debts to pay off first, how to prioritize them. Today I’d like to share with you a concept called “Snowballing”. You might be wondering what it has to do with debts?

Well, Snowballing debts means, setting up a schedule of what debts you will pay off first.

  1. Arrange your debts by Highest Interest or Lowest Balance
  2. Dedicate how much extra per month we will devote to our payoff schedule
  3. Add this additional money you will add to your minimum monthly payments
  4. Once the 1st debt is paid off, then move the extra payment and the minimum payment from debt #1 to debt #2, and so on.

I use a free site: www.whatsthecost.com to create my snowballs. When you get to the site, on the left-hand side click on “Snowballing.

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Anna Sergunina
Anna Sergunina
anna@mainstreetplanning.com

I'm Anna Sergunina, CFP®, President & CEO at MainStreet Financial Planning, Inc. My passion lies in serving others through financial planning, helping clients achieve their dreams like buying a home, saving for education, or retiring early. With over two decades in the industry and a CFP designation since 2009, I'm dedicated to excellence and continuous growth. Beyond work, I cherish moments with my son Liam, prioritize self-care, and engage in content creation for my Money Boss Parent Podcast and Money Library blog.

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