Debt Snowball: Organizing Our Debt

Today I wanted to talk a little about finances and in the current state of our economy during the pandemic we really need to keep an eye on how we are spending more than usual. In this post I am going to focus more on debt because keeping the debt we already have in check will help in the long run.

Something I use all the time is a debt snowball. What is a debt snowball? If done right a debt snowball is like rolling a snowball down hill, as it rolls it gets bigger and bigger.

When it comes to debt snowball it is the process of paying more than the minimum payment on your smallest debt while paying your minimum payment on the rest of your accounts. Once your smallest debt is paid the month amount is then added to your next debts payment. This strategy makes paying down you debts faster because you are making larger and larger payments as you move along.

To do this is use the following website,

This site has a few different ways you can set up your debt snowball, however I just use the basic set up that I explained above. You can enter as may accounts as you need with the current balance, minimum payment (or payment you want to make), and the interest rate.

I really love that you can put just about anything in this snowball including savings goals. I try to have a savings goal within my debt snowball because it can help you save as if you are just paying a regular bill every month.

For the example above I put in our current credit card balances, yes it is high, the payments we make and the interest rate, also high. I have the debt snowball to pay the lowest balance first, with the highest payment. This way the lowest balance pays off faster and then that payment is added to the second debt making it also go down faster.

This site, once you have added all of the debt or savings goals you want into the rows, also breaks down the payments for you.

I really love the way this site breaks down the payments, showing not only the payment each month but also showing you how much is actually going to interest. It also shows how long it will take to completely pay off the debt and how much your monthly total payment is making it easy to track for my monthly budget.

If you are one of those people that need even more information, also provides a full breakdown of your payoff plan. This includes a deeper look into your time to pay off, total interest and principal. It also compares if you were to continue to pay your minimum payment versus using the snowball method.

This by far is the easiest way I have found to organize paying off our debts. Do you have a way to organize your debts that I should check out?



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