When credit cards are used responsibly, they can be very helpful and practical tools. However, in the blink of an eye, credit card debt can spiral out of control. It can feel so overwhelming trying to pay off this debt that a person may not know where to even begin. A simple debt payoff strategy that many Florida residents use to get out of overwhelming debt is the debt snowball method. Here’s how it works and how to use it.
The debt snowball method
The debt snowball method works best for those with multiple credit card balances. The idea behind the debt snowball method is to prioritize paying off debt by amount owed on each account. The amount the owner pays toward each debt accumulates over time, like a snowball rolling down a hill. The method helps credit card owners to pay off their debt faster and also helps them focus on a payoff plan instead of wondering how much to pay each month.
How to use it
To implement the snowball method, focus on paying the smallest balance first. Pay as much as possible toward the small balance while making the minimum payment on larger debts.
Once the smallest balance has been paid off, continue to pay the same amount to the next smallest balance in addition to the minimum payment, and so on. When these steps are continued, eventually there will be a giant snowball payment against the largest debt. Then, finally, all debt is paid.
The debt snowball method is one of the most popular and efficient ways to pay off credit card debt. But sometimes life happens, and paying off massive debt becomes impossible. In this case, bankruptcy may be something to think about. Those in Florida who want more information about filing for bankruptcy could gain clarity by contacting a legal representative who is knowledgeable in bankruptcy law.