What is a Debt Snowball?

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I can remember as a boy in Kentucky we would often get snow in the winter. One of my favorite things to do was build a snowman. I would first pack a small ball of snow then I would begin to roll it around the yard. I would love to see how big it could get. I would roll it and roll it until I couldn’t push it around anymore. Then I would commencing repeating the process until the snowman was built. Debt can feel the same way in that we started with a small amount but we keep taking on more and more until we find ourselves in a mess. Typically in a mess we feel helpless and unable to get out of. My hope through this post is to help you see that you can start a new snowball that can crush the back of debt. I am not going to tell you it will be easy or painless, but with some serious determination you can do it.

The debt snowball is actually step 2 in a plan to get out of debt. Step 1 is to save $1,000 for emergencies. Once you save $1000 it is time to move on to start the debt snowball.

The debt snowball can change your situation much quicker then you expected. Here is how it works. Take all of your debts and put them in order from smallest to largest (amounts). We don’t care which was one has the smallest payment; we just care about size of the debts. We are only going to pay the minimum payments on all the other debts but the smallest one at the top of the list. If we need to reallocate funds or get a part job to put some extra toward this top debt, it might be a good time to do it. You put any extra you get toward this debt until this debt is paid off, then take all the money you were dumping into first debt and put it toward the next debt on the list. If you continue to do this over and over again until all the debt is paid off you will create a debt snowball that starts small but grows larger and larger over time to crush the debt much faster then paying minimum payments on the debt for the rest of your life.

If you will just take this plan and begin to implement it your debt situation will be turned around quicker then you could have ever expected.

What are some things you have done to help eliminate debt? What encouragement would you give someone else who is considering using this method?

Here are Some Other Helpful Resources:
Dave Ramsey Explains the Debt Snowball: https://www.youtube.com/watch?v=zZP9aflH7MY
Online Debt Snowball Calculator: https://www.mytotalmoneymakeover.com/debt-snowball/ 

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I am a pastor, church planter, leader, and father. I have been blessed to be the founding pastor of Courageous Church. I spend much of my time seeking to help others take their next step in growth and leadership. I am the main visionary architect and communicator for Courageous. I love spending time with my family and because of them I am blessed beyond imagination. I believe I have the best l life possible.

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