How to Get Out Of Debt Using the Debt Snowball Method

For many people, getting out of debt appears impossible. Having been in debt for many years, even following the strictest method of debt elimination can appear monumental. However, one method that stands out from others is the snowball strategy. Unlike others, debt snowball method is aimed at creating noticeable results at the earliest possible instance and building momentum to clear other debts.

How the snowball strategy works

  • Starting with smart budgeting

It is important to note that proper budgeting is one of the core components of using and succeeding with the snowball method. This is because the budget allows you to see where the money goes every month. It is from the budget that you can identify excesses and nip them to help reduce the budget. For example, you could cut the daily transport and meals costs through cycling to work twice every week and carry lunch three days every week.

  • Make a complete debt list

To get the snowball rolling, you have start by creating a complete list of all debts so that you can start clearing them from the smallest to the highest. At this point, it might also be crucial to reach the creditors and renegotiate the loans in order to get the least amount that should be made every month.

If you have the following debts, make sure to organize them in order of size;

  • £350 medical bill (‎£40 payment/ month)
  • £2,500 credit card debt (£60 payment/month)
  • £3,000 car loan (£14 payment/month)
  • £10,000 student loan (£56 payment/month)

Note that the target is attacking the loan with the smallest amount and clearing it as fast as possible. Because you have already worked on the minimum amount that should be paid every month, add the additional amount that you saved after cutting on expenses. For example, if you can manage an extra £20 after paying the minimum amount, and can raise an additional £15 after slashing expenses, it means that the medical bill will be attacked with a total of £75. The ultimate effect is that the medical bill is cleared in about 4.5 months.

The next step will be adding all the £75 to attack the next debt. On the 5th month, you will be attacking the credit card loan with a total force of £135 which will help you to clear it faster.

Why the snowball method will work for you

  • The ultimate effect of the snowball method is that you will get the entire debts cleared off.
  • The momentum that builds after clearing the first few debts becomes monumental and will help to clear all the remaining debts to leave you debt free.
  • Because you are attacking the loans starting with the smallest one, you get the motivation that the debts are actually getting cleared.
  • Because the process involves smart budgeting, you will get through the debt a more Knowledgeable person. For example, the important trick of cutting on costs will help to address any financial issue in future.
  • This is a great way to address poor credit score because debt is one of the main factors that pull it down.


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Debt stress – how to cope and get through it

If you were to ask any living human being, their ultimate desire is to make lots of money and live without a care in the world. When you think about it, we spend many hours, days and weeks of our lives on earth thinking about money, how to make it and ultimately spend it. While some of us are wise enough to live within their means, some of us choose the dangerous path of living large while piling up copious amounts of debt. The resultant effect is debilitating stress, depression, anxiety, fear just to mention but a few. That said, how can you relieve stress associated with immense debt? How can you cope and ultimately get out of a situation that could ultimately bring your life to a screeching halt?


To deal with debt stress, you need to accept your situation and face your demons. Being in denial won’t help you and it’s therefore about time you took stock of how deep you are into debt and put in motion strategies of getting out of it. Accept that what you are dealing with is dangerous and the only way to get out of it is if you fully accept your predicament and make efforts towards reducing your debt. The more in denial you are, the more you are likely to fall into further stress and depression.

Plan, come up with a budget and stick to it

You might have noticed that the very reason you are deep into debt is because you spend without planning. You probably spend lots of money on things you don’t need to impress people you don’t like or simply live a life you can’t afford. The only way you can seal loopholes, spend money wisely, save more money and reduce debt is if you take measures to come up with a budget and stick to it. It is never too late to start afresh and all you need to do is simply make up your mind that from today henceforth you will be planning for your finances and stick to the budget you create.


You definitely cannot deal with stress associated with debt if you are negative about life and have a bad attitude. The world does not come to an end simply because you are heavily indebted. Remember that many people have been in your exact position in the past and having a positive attitude is what got them through. Take a moment to think about the good things of life and how you are not supposed to give up simply because you are going through some problems. Sacrifice and give up some comfortable things you love doing for the sake of doing away with debt.

Keep yourself busy

Avoid being idle and thinking too much. Instead, be engaged with activities that affect you positively. For instance, form a habit of exercising and working out. After all, it has been found that physical exercise actually help your brain produce chemicals that make you happy. You don’t need to sign up with a gym and spend more money while at it. You can actually exercise at home as there are many exercises you can comfortably do from the comfort of your home or even office.

In conclusion, debt need not be a cause of your anxiety, stress and depression. With a positive attitude, a good budget and the will to forego some luxuries you are used to, you can actually get out of it within no time.


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