The Debt Snowball Method – How Do You Make It Work For You?

One of the greatest tragedies which defines modern education has to do with a total dearth of teaching in terms of finances. Sure, kids know how to add, subtract, and multiply; but they don’t know how to critically assess and address their financial situation, leveraging assets against expansion for greatest profit.

Additionally, they often don’t realize how much money they do or don’t have. As students become adults, and adults become local bastions of their community, it accordingly becomes easy to fall into debt simply through dint of “keeping up with the Joneses”.

Barring that, unforeseen medical expenses, family emergencies, or property damages emanating from some emergency can also throw someone into debt. And don’t forget one of the most likely reasons people go into debt: unexpected pregnancy at the wrong time.


The overall solution is to live beneath the purchasing means you have, but like so many things in life, this is much easier said than done. Additionally, it may not even be possible if your means are scant enough. And everybody messes up sometime. Even the most financially sound marketers, stock people, and investors make mistakes.

But you don’t have to be defined by your mistakes. You don’t have to be stuck under the thumb of debt perpetually. You can escape debt, you can remain debt free, and you can even get to the point where you accumulate wealth going forward.

Now it’s not likely to happen overnight, but if you’re careful to employ the right kind of strategy, you may be surprised at just how quickly positive change can come. It will require some level of discipline, and there will be hard times; but being free from the scourge of debt is definitely worth the difficulties which may necessarily be involved. There are options out there.


The main reason consolidation tends to be an effective method of debt reduction is tied up in what’s known as “interest”. Basically, if you want to give this concept a root purpose, it’s the incremental payment you give to those who own your debt so they don’t seize your assets or require the full sum of you immediately. It’s how they make money.

If you’ve got multiple debts, you’ve likely got multiple streams of interest bleeding from those debts at minimal rates that compound over time. You can actually double the cost of what you pay off at interest if your payments are small enough, and this is certainly the goal of most providing incremental solutions silhouetted in a form of interest collection.

If you consolidate everything together, what happens is that an agency takes over the debts you had piecemeal at piecemeal interest rates (which add up), and combines them into a single monthly payment that is eminently manageable. It will still have some interest, but what you pay on the consolidated sum will be smaller than what you payed incrementally on multiple debts before. At least, that’s the ideal situation.

Basically, with consolidation you’ve experienced a debt snowball effect that has reduced what you’ll pay in the long-run for your debt, and could effectively even extend the time you have to pay it back if you’re short on funds. There’s even the potentiality of increasing your credit score, though take things one at a time; you’ll have a much better chance of that once you restore yourself from debt.

Consolidating Debt And Lifestyle

If you’re looking to find a means of applying consolidation strategies to your debts, you can save substantially— different organizations can be instrumental in this. By working with you, their teams will build a detailed picture of your unique financial situation and offer a tailored solution that best matches your needs.

As you go about paying back your debts, you want to learn how you can live beneath your means. Sure, you could spend $20 on food at the grocery store daily and still save a few $100 every month; but if you can cut that expense down to a once-a-week digression, or from being practiced at all for a period of time, you can see incremental expenses add up.

One thing you want to do is save as much money as you can; you can find tips on doing as much. Saving even just a little bit of money can make it easier to achieve your dreams and achieve the sort of financial security you have been looking for.

Savings Strategies

Consider designer coffees. You go to the coffee shop daily and just spend $4.00. Harmless, right? Except, that’s $28 a week, and $1,460 a year. Spend $60 on some coffee, spices, sugar, and a coffee machine; put the other $1,400 against your debt. Do the same with fast food, cutting the figure in half and paying for meals in your home, and you can save $3,000 over usual expenses annually.

You can find more tips on smart budgeting here. If you take it further, you can save more, and better. Here’s an ultimate cost-cutting strategy: grow your own fruits and vegetables, prepare your own meals, install off-grid effective energy solutions like solar, wind, and water energy, thus cutting your utility bills, and ride a bicycle wherever you can. Keep a vehicle, by all means; but double-down on fitness and cost-cutting through regular riding.

Cut out all the excess, live at the bare minimum, and put everything you can spare against your debt. If you do this for just a few years, even large amounts can be expediently paid off while leaving you with strong, positive life habits. In such a way you’re developing yourself even while you struggle free from debt, and in the end you can emerge stronger.