Debt Snowball Method: A Step-by-Step Guide to Debt Freedom

The debt snowball method uses quick payoffs as a motivation to continue and pay off debt quickly. You take all of your debts and pay the minimum payment amounts on all debts, except one. You focus all of your left over funds to pay down the balance of one card and pay as much as you can every month. Once it is paid off, you take the amount you were paying on the specific debt and apply it to the next debt, while continuing to pay only the minimum on all other debts. The best strategy is to pay off the highest interest rate first so that you save money in the long run.