The debt snowball plan is one of the quickest ways to become debt free. It is simple, effective and creates a plan to help anyone become debt free. This plan has become very popular and is promoted by a number of top financial advisors and personal finance experts because of its simplicity and effectiveness.
A debt snowball plan is a debt reduction strategy that focuses on paying off individual debts one at a time starting with the smallest balance first. In addition, minimum payments are made on all other debts to focus on paying as much money as possible on the smallest debt. When the smallest debt is paid in full, the payment savings from that debt is applied to the next smallest debt with any additional money until it is paid off. As a result, more money is continually freed up to accelerate the prepayment of consumer debt until every debt is paid in full.
Dr. Jon Wittwer of Vertex22 created and offers a free debt snowball calculator. It is a simple but very effective spreadsheet that anyone can use. It provides an easy to use calculator to enter all of your debts. Once you have entered in all of your debts, you can review several different debt reduction strategies. The most popular strategy is the Debt Snowball Plan. However, you can also review the Debt Avalanche Plan. The Debt Avalanche plan uses the same methodology but focuses on paying off debt with the highest interest rate first You can also create payment schedules to track your progress. The templates and payment schedules can easily be printed.
The free Vertex22 Debt Snowball Calculator is an incredible resource that can help anyone become debt free if they are committed to achieving the goal of debt free living. Debt free living can be a reality for anyone at any age.
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