How to Reduce Your Debt Using the Debt Snowball Method

What is DEBT snowballing? Does it work? How do I get started? There are numerous articles on this subject an all of them will in some way or another teach you how to apply a simple concept to a difficult task. The task of reducing your DEBT using DEBT snowballing is a difficult one and will require you to stay the course and prioritize your finances. The concept works and can without questions get that that noose around your neck loosened up.

In this short article I will try to share 5 truths about how to apply the debt snowball technique to help you reduce various DEBTS you may have. The methods are not rocket science, but they do work and can help relieve the anxiety that consumer debt brings on families.

1. What is the debt snowball method? Debt snowballing is not a unique concept only used by Dave Ramsey in his book The Total Money Makeover. This technique has been practiced by other organizations as well such as Debt Free and Prosperous living and many others. The concept involves accelerating debt payoff from the smallest debt to the largest thereby creating a snowball effect on reducing your debt. The smallest debt is attacked first, regardless of the interest rate and then you move to each successive debt until each is eliminated.

2. How do you generate EXTRA MONEY to reduce your debt and start the debt snowball into action? You have to tighten up your budget and apply that extra MONEY to the smallest debt and take it one day at a time. You must have a plan and you must stick to it. There is a great application for you iphone users and it is called debt snowball pro. It can be downloaded from your iphone and used to help you see how fast your debt will decrease. Once you can see how much debt you will actually save, you will be more motivated to start building your snowball to start reducing your debt.

3. Start a home based BUSINESS or internet business to supplement your income. Dave Ramsey does not talk much about this, but many times you have to spend a little CAPITAL in order to make supplemental income using the most powerful tool in the world the INTERNET. There are thousands of opportunities out there to look at, unfortunately most only take more of your money. Make sure you do your research before you dive in. There is lots of opportunities waiting, you just need to go out and find them.