The Snowball Effect

AuthorNick Vance

Date: February 9th, 2018 8:00 AM

The snowball effect for paying off debt is a fantastic concept and very easy to understand.

Let's Say You have 5 recurring debts:


Debt Type
Total Debt
Monthly Payment
Student Loan
Medical Bill
Credit Card

Looking at this chart, your lowest payment is your credit card. When you plan your budget, work into your budget an additional 10-20% to put towards additional debt payment.

·       Apply “additional payments” to your monthly credit card payment

o   Continue payments until your total credit card debt is paid off
o   You now have $150 plus the 10-20% surplus available in your budget, this now becomes your total surplus
·       Apply total surplus to your monthly medical bill payment
o   Continue payment until your total medical bill debt is paid off
·       Continue following this process for all your debts
This is the snowball effect It’s simple, yet extremely powerful. All it takes is a little planning.

BN Focus – Go to your Snowball debt calculator and enter in all of your debts. Then choose which debt you will eliminate first and begin your journey to becoming debt-free.

Leave a Comment

You must be logged in to leave a comment