#Which bills to pay first trial#

Now, before you start arguing about the interest rates, hear us out. Step 4:В Repeat until each debt is paid in full. Step 3:В Pay as much as possible on your smallest debt. Step 2:В Make minimum payments on all your debts except the smallest. Step 1:В List your debts from smallest to largest regardless of interest rate.

#Which bills to pay first trial#

You can pay off debt faster!В Get started with a FREE trial of Ramsey+. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment. The debt snowball method is a debt-reduction strategyВ where you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. And if youвЂ™re following Dave RamseyвЂ™s 7 Baby Steps, youвЂ™ll use this method when you reach Baby Step 2-meaning youвЂ™re current on all your bills and have a $1,000 starter emergency fund. So why in the world are we talking about snowballs? Because when you use this technique to pay off your debt, youвЂ™ll be debt-free in no time. As you gain momentum and speed, your snowball grows into a snow boulder. If you grew up around snow, you know that the fastest way to build a snowball is to pack some snow into a tight ball and start rolling it around your yard. Let us introduce you to your new best friend (and the fastest way to get out of debt): the debt snowball method.

Looking to get out of debt-for good? YouвЂ™ve come to the right place.