The snowball method is a common debt-reduction strategy. It allows you to pay debts off faster without increasing your monthly contribution toward debt.
To use the snowball method, you should “roll over” your monthly minimum payments as each debt is fully repaid. In other words, when you're done paying off a debt, you'll take the monthly contribution to that debt and put it toward another. The total amount you pay each month stays the same, but the monthly contribution to each debt goes up progressively as they are paid off. This can help you get out of debt without the need for painful budget cuts.
To view a breakdown of the snowball method with your current debts:
- Navigate to the Debts tool.
- Click on "What is Snowballing?" to the right of the debts chart to view the details of the snowball method.
To learn more about the Debts tool, watch the quick clip here.
Disclaimer: The functionality of this software varies depending on which financial institution you use. Not all content in this help center will apply to your experience.