Debt Reduction – The # 1 Way of Eliminating Debt!?

Reducing Debt is a No. 1 priority for anyone who wants to be financially free

There are a few different debt reduction techniques that are very popular. Here we examine one ultra-simple technique known as the ‘debt snowball’ method and ask whether it is the # 1 method of eliminating debt?

There are many different strategies for getting on top of debt. One popular technique is known as the debt snowball. The reason it’s named ‘debt snowball’ is because you start with the smallest debt and work your way up to the biggest one, like rolling a snowball. When the first loan is paid in full you allocate the payment from this first loan to the next highest one. As each loan gets paid, the pay down amount getting applied to the next largest one gets larger each time – hence the term ‘debt snowball’.

The reason this method is so popular is that paying the smallest debt off first gives you a quick win early on, giving you momentum and so you are more likely to stay with the plan.

Below are the steps to applying the debt snowball technique for eliminating debt:

Debt Reduction Step # 1: List All Your Debts Starting with the Smallest Balance

Debt Reduction Step # 2: Only Pay the Minimum Amount on Each Debt

Debt Reduction Step # 3: Make Extra Payments on the Smallest Debt

Debt Reduction Step # 4: Once the Smallest Loan is paid in Full, Celebrate!

Debt Reduction Step # 5: Tackle the Next Smallest Loan

Debt Reduction Step # 6: Repeat until all Debts Are Paid

Read more on all this steps in my next blogs.

The power of the debt snowball is in the momentum you obtain as you eliminate each debt. As well as that there’s the financial power you get from applying payments from previous loans onto the next ones, snowballing your payments. If you’re serious about eliminating debt, creating wealth and achieving financial freedom then why not sign up NOW for more insider secrets on debt reduction at www.MillionaireMindsetSecrets.com for FREE.