The debt snowball method for paying off debt consists of four steps: (1) List all debts from smallest to largest balance, regardless of interest rate; (2) Make minimum payments on all debts except the smallest one; (3) Apply as much extra money as possible to the smallest debt until it is paid off; (4) Take the amount previously paid toward the smallest debt and add it to the payment for the next-smallest debt until that one is also paid off.

Authors

• Person: Not available Organization: Ramsey Solutions
  The Basics of Personal Finance - Ramsey Solutions

Sources

• The Basics of Personal Finance - Ramsey Solutions www.ramseysolutions.com Ramsey Solutions via serper

Referenced by nodes (2)

• Debt Snowball method concept
• debt concept