Snow Ball your debt

1. Line up your debts starting with the smallest balance. Don't look at the interest rate. The only time the interest rate comes into play is if you have two balances that are very close.

2. Focus on paying the smallest debt first. Once that debt is paid off, you use the money you were sending that creditor and begin applying that to the balance of the next highest creditor. Pay that one off and keep doing it with the third, fourth, & etc

3. All the while, you make the minimum payments to the creditors that you are not currently focusing on. Focusing on one debt allows you to feel a sense of accomplishment when you pay one off. That will keep you interested in paying off your debt. You can even have fun with it.

You may download the file below and use it in Microsoft Excel or other spreadsheet programs.

Download the "Snow Ball your Debt" spreadsheet here