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Step three get out of debt using debt snowball

March 6, 2010

What is a debt snowball? In the last step you saw where you were spending extra and found ways to save small amounts monthly on normal expenses. Now take those small savings and add them to your minimum credit card payment on either your highest interest card or the one you owe the least on. The high interest one makes the most sense financially but sometimes if you use the one you owe the least on it’s nice to see the quick results. So once you decide which card pay your minimum payment + the extra savings from the month. Once you pay off that first card start on the second, you pay the minimum payment on the second card + the minimum payment from the first card + the monthly savings and you do this until your second card is paid off. Then you move on to the third and fourth cards etc. the same way until you are debt free. So what do you do now you’ve paid your cards off you have this debt snowball money every month what do you do with it? Well, it’s time to start an emergency fund it should be about 3 to 6 months of salary and maybe more if you are in high turnover field and who isn’t now. So just keep snowballing that debt and not overspending and you can get here.

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From → money, people

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