Today I am going to talk about the snowball method of repaying your debt. I will also include a link to a spread sheet that explains it and also lets you put in your own debt to see how much you can save.
The "Snowball" method is were your minimum payments are $100 across all five of your credit cards. So you pay $110 so instead of paying $20 on all you pay $30 on one and $20 on the rest. You should either start with the lowest balance so you can feel like you can get a boost of confidence when it is paid off; Or you can start with the highest interest rate first so you pay less interest in the long run.
When you pay off your first debt you take the $30 you were paying towards the now paid off debt and pay $50 to the next debt. So that you are still paying the same you always were so you don't notice a difference in your finances. It also give you a sense of accomplishment because your paying more then you have to and getting your debt paid off that much sooner.
This is the link to the spreadsheet you can download it from as google docs does not recognize all the formulas in the spreadsheet for some reason. Leave a comment letting me know what you think of the spreadsheet.
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