In my last post I spoke about the Snowball Strategy to Debt Elimination. If you make a snowball and roll it down a mountain for every roll, that snowball will pick up more snow and get larger and larger. The basic idea is to achieve your goals of debt payoff by taking the path of greatest momentum.
In my previous post, “Secrets to Debt Elimination,” I also included a video of a young man who walks us through and explains the basics of how this snowball debt elimination formula works. I told you however, and gave you some sites where you can get software to do this for you automatically.
What can you expect to get from the software?
You will get a printed plan that you can follow monthly. It will guide you along the way. Believe it or not, gathering all the bills is usually the most time consuming part of the whole debt elimination process because usually bills are everywhere instead of in one spot.
- Get ALL your bills together in ONE place.
- Enter the name of each bill (List only bills that can be paid off. Not utilities, phones, rent, etc.)
- Enter the balance due on each bill
- Enter the interest rate on each bill
- *Enter the monthly payments you have decided to pay each month
- Enter the MINIMUM monthly payment dictated by your credit card company or loan company
*Why do I need to record what I currently pay on each bill?
Because most people say they have no extra monies to put towards paying off their debt when they actually do. Extra money is found when people pay above their minimums. The idea is to redirect these extra dollars once the software calculates and prioritizes which bill will be paid first. The extra funds will be added to your new priority bill.
What does the software do?
The software will prioritize, calculate and display your own personalized complete debt-elimination plan—year by year, month by month, and payment by payment. It will let you know the month and year you will be completely out of debt!
The software will prioritize payments and will let you know which payment to make to which creditor, and how much that payment should be each month. As each debt is paid off, it’s dropped from the payment schedule and that amount you use to pay is added to the next prioritized bill until all bills are paid off.