Debt snowball method: Difference between revisions
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* [http://www.daveramsey.com The Lampo Group, Inc.] |
* [http://www.daveramsey.com The Lampo Group, Inc.] |
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* [http://www.daveramsey.com/media/pdf/fpu_babysteps.pdf Dave Ramsey's Baby Steps (pdf)] |
* [http://www.daveramsey.com/media/pdf/fpu_babysteps.pdf Dave Ramsey's Baby Steps (pdf)] |
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[[Category:Finance]] |
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Revision as of 20:11, 2 August 2005
Dave Ramsey's method for paying off all debt.
List all debts in assending order from smallest balance to largest. Commit to pay the minimum payment on every debt. Determine how much extra can be applied towards the smallest debt. Pay the minimum payment plus the extra amount towards that smallest debt until it is paid off. Then, add the old minimum payment from the first debt to the extra amount, and apply the new sum to the second smallest debt.
Repeat until all debts are paid in full.