Navigate  Home  Why Get Out of Debt  Find a Debt Buddy  Debt Snowball  Change Credit Cards  Get an IVA  Debt Consolidators  Debt Advice Books  Money Videos  Earn More Money  Create Debt Blog  Finance eShop  Credit Calculator  Search  Keep Up-To-Date  Finance Poll  Money Toolbar  Glossary  Contact / Support  Personal Finance Blog  Finance Directory	Snowballing Debt One way of getting out of debt is by using the 'debt-snowball method'. This mehtod of debt repayment is a form of debt management that is usually used to repay revolving credit like credit cards and store cards. This way of paying of debt is growing in popularity all the time. It can seem quite complex at first so read it a few times, but here is the basic steps in the debt snowball:   1) List all debts in ascending order from smallest balance to largest.   2) Commit to pay the minimum payment on every debt.   3) Determine how much extra can be applied towards the smallest debt.   4) Pay the minimum payment plus the extra amount towards that smallest debt until it is paid off.   5) Then, add the old minimum payment from the first debt to the extra amount, and apply the new sum to the second smallest debt.   6) Repeat until all debts are paid in full. As you will realise, in theory, by the time the you have reached the final debts, the snowball will be "rolling" quickly because it has picked up financial mass. Hence, larger debts will be paid off much quicker. There are also some variations of this method that are used by financial advisors, if you are interested in using this method we recommend you look around the web for more information and make a plan so you can use it to become debt free.

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