Brett Fingerhut on How to Utilize the Debt Snowball

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11/18/22, 4:37 PM

How to Utilize the Debt Snowball - Brett Fingerhut

a How to Utilize the Debt Snowball

Many Americans are overwhelmed by finances. It is hard enough for many to budget for food, gas, and utilities without adding debt payments to the mix. However, there is a solution that can help reduce anyone’s debt quickly and effectively: The Debt Snowball. The Debt Snowball is a method that seems complex, so I’m going to break it down with an example. Let’s say you have a monthly mortgage payment of $1000, a car payment of $300, a credit card payment of $100, and a student loan payment of $100. Altogether, you’re paying $1500/month toward debts. The Debt Snowball has you pay off your smallest debts first, while leaving your larger ones for later. I will note that I generally agree with this, although I suggest paying off the debt with the lowest interest rate instead of the lowest total amount. It may seem counterintuitive, but it works. Let’s say you have three monthly payments of $100 toward your credit card before it is paid off. You go about those three months paying the minimum amount you owe toward https://brettfingerhut.com/how-to-utilize-the-debt-snowball/

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Brett Fingerhut on How to Utilize the Debt Snowball by Brett Fingerhut - Issuu