Multiple debt snowball

A debt snowball accelerates the paying off of multiple debts, including credit cards, by using the "rollover" method. As soon as one debt is paid off, the freed-up payment amount from that debt is used to help pay down the next debt even faster. The process continues until all debts are paid off. The debt snowball is the most cost effective, fastest, and emotionally satisfying way to get completely out of debt.

To create a debt snowball payoff plan:

Add the snowball plan to your Budget. Before making these changes to your Budget, either take a backup or clone your Budget.

If you are not comfortable with how the snowball payoff plan impacts your Budget, go back and adjust the snowball settings to create a new plan that will fit better within your financial situation.

Reconcile credit card statements

It is important to continue reconciling statements for snowballed and amortized credit cards every month. In addition to providing you with a record of statements and monthly balances, reconciling a monthly statement that has a zero new balance is how an amortization schedule is finished. When a statement with a zero new balance is reconciled, the credit card is automatically unamortized and any remaining scheduled payments are deleted. The credit card is again ready for use.

Recalculate the plan

To ensure that your snowball plan does not get too far out of sync with the actual debt balances and/or payment due amounts, every few months update your list of debts in the snowball with current numbers and recreate the snowball plan. Then update plan payments in your Budget to agree with the updated snowball plan.