snowball?

**Jamauk** · 12-29-2007, 02:38 AM

I've heard several people refer to their debt snowball. Forgive my ignorance, but what exactly does that mean?
Thanks!

**frugal-fannie** · 12-29-2007, 03:07 AM

snow balling the debt. Is like a snowball rolling down hill it grows and travels faster. So you are paying your debt more and faster, as you pay off one debt you take and add that to the next payment until all debt is paid off.

**PrairieRose** · 12-29-2007, 09:48 AM

For us it started with an extra $300/mo. that dh got from renting out part of his warehouse to his company that he sells items for. We started applying this to a car loan for one of our kids' cars. When that loan was paid off we took the $300 + the car payment (I think it was like $265) and added it to our car loan ($480). We paid that car off in like 7 months. After that was paid off we took the $300 + first car loan of $265 + other car loan of $480 and snowballed that onto a home improvement loan of $375. Before long we were paying well over $1000 month extra on each loan we were knocking out, making the pay off come SO much faster. It got to be such a thrill! It's amazing how fast you can pay your home mortgage off when you're paying that much more on it monthly! The theory is that you can pay off every debt you owe on in 3-5 years, just making the payments you're already making (snowballing them though

) and it works, I can tell you from experience!