Page 17 - Financial Workbook

Debt Snowball
If you have debt that you want to pay off, we will begin creating a debt snowball. The debt snowball method is where you pay off debt in order of the smallest to largest amount owed. When the smallest debt is paid off, you roll the amount you were paying to the next smallest balance until all your debt is gone. Once you get the first debt paid off, the debt reduction will begin to accelerate, kind of like a snowball rolling downhill.

Financial To Do’s

Financial Statement with the Debt Snowball
How does a Debt Snowball work?
1. List all your debts from lowest balance to the highest balance. Click on the icon below to open the spreadsheet below to accomplish this.
2. Make minimum payments on all your debts except the lowest one.
3. Apply as much money as you can toward the lowest debt.
4. As accounts are paid off, roll the payment from the paid off account to the next smallest balance.
Continue to roll the payments to the next smallest debt as each debt is paid off.
Don’t Forget To Celebrate Your Success! Did You Know...
God does not want you to be in debt, or in His words, a “slave” ... “
The rich rule over the poor, and the borrower is slave to the lender.”
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Proverbs 22:7 (NIV)