Snowball your way out of credit card debt - Steps to complete it ...

As the consumer credit card debt obligations are soaring day by day, the debtors are looking for ways in which they can tackle their situation and also avoid hurting their credit score due to rising defaults.

Andres Rueda / Foter

While there are so many debt relief programs that can help you forget your debt problems by repaying them in easy and affordable monthly payments, most experts are of the opinion that one should go for debt repayment on his own so that he can save money on unnecessary charges and fees. Debt snowballs is one of the most common methods of DIY debt repayment that can easily be considered as a worthy alternative to credit card consolidation companies. If you?re not aware of the ways in which you can snowball your way out of debt, read on the concerns of this article.

The debt snowball method brings in momentum to the debt repayment procedure

You must be wondering the reason behind snowballing your debts and repaying them when there are many other options. Well, momentum is perhaps the biggest reason for the success of the debt snowball method where you can pick up speed and get out of debt faster. As you start paying off the smaller debts, you can see some quick wins that will solidify the belief that you can win the battle easily and gain momentum.

A step by step guide to the debt snowball method

List all your debts from smallest to largest balance: This list should include all kind of debt that you owe as it is important for you to know where you stand in order to start off with a bang. Student loans, auto loans, credit cards, medical bills and personal loans should all be listed here. Also gather the information of the name of the creditor, the minimum payments and the interest rates that you?re paying.

Start triggering the smallest debt: Make a commitment to pay the minimum monthly payments of all the accounts. After you make the monthly payments on all the debt accounts, the amount that you can squeeze out of your budget should be devoted to attack the smallest debt account. You can see some quick results this way as you will get the mental satisfaction when you see your debts to decrease.

Move to the next smallest balance: Soon after you complete paying off the credit card debt account with the smallest balance, move on to the next smallest balance. Again apply the same technique of continuing to pay the minimum monthly payment of all the debt accounts while specially concentrating on the next account with the smallest balance. Use all the extra money to attack the debt.

Repeat the steps to become debt free: Keep on repeating the steps mentioned above until you become entirely debt free.

As you see the debt vanishing one by one, you will get the boost of repaying the next smallest debt account and this way you can delete all your high interest debts. Instead of opting for credit card consolidation, you can easily become debt by adopting the debt snowball

This post was written by John Martinez

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