July 2nd, 2008, 11:28 PM #1
Has anyone here heard of "debt snowballing"?
I was talking to someone today and they mentioned this method of paying down debt called debt snowballing. The way they explained it to me was that you pay more on the lowest debt until you finishing pay it off (you would still be paying down on your other debts of course). Then you take the money that was applied to the debt that you just paid off and add it to the next debt and so on until all of the debts are paid. They said that it would work very well for credit cards.
Just wanted to know if anyone here has heard of this method of paying down debt or if someone has used it?