"The rich rules over the poor, and the borrower is the slave of the lender."
The Debt Snowball Method Instructions
- List Debts Smallest to Largest: Order all non-mortgage debts from smallest balance to largest balance regardless of interest rate.
- Pay Minimums on All Except #1: Pay minimum monthly payments on every debt except the smallest balance.
- Attack Debt #1: Put every extra dollar toward Debt #1 until it is completely paid off!
- Roll the Snowball: Take the total monthly payment from Debt #1 and combine it with Debt #2's payment!
| Payoff Order |
Debt Name |
Balance ($) |
Interest Rate (%) |
Min Payment ($) |
Target Payoff Date |
| #1 Smallest |
Store Credit Card |
$850.00 |
24.9% |
$35.00 |
Month 3 |
| #2 |
Visa Credit Card |
$2,400.00 |
18.9% |
$65.00 |
Month 9 |
| #3 |
Auto Loan |
$8,500.00 |
6.2% |
$210.00 |
Month 22 |
| #4 Largest |
Student Loan |
$14,500.00 |
4.5% |
$155.00 |
Month 38 |
$26,250
Total Debt Principal
38 Months
Estimated Debt Freedom