 TITLE: Debt Snowball Strategy: How Does It Work? CONTENT: When Is the Debt Snowball Method the Best Approach?\n---------------------------------------------------\nThere's no one-size-fits-all solution to paying off your debt. Where one method may work for a friend or family member, another may be a better fit for you. Here are some scenarios where the debt snowball method may be the best strategy to use:\n*   **You want to close some credit cards.** If you want to reduce your exposure to credit card debt and those balances are lower than other loans, the debt snowball method will help you pay them down faster. After that, you can close the account and keep yourself from racking up a balance again.\n*   **You're trying to reduce your debt-to-income ratio.** Your debt-to-income ratio (DTI) is an important factor when applying for new credit, especially with mortgage loans. By eliminating loans with lower balances, you'll remove them from the DTI equation entirely, making it easier to get approved for an auto loan or mortgage if you need it.\n*   **You're having a hard time staying motivated.** Paying off debt can be a monumental task, and it can be tough to stay on track if you go years without getting rid of any balances. By eliminating your lowest balances first, you'll start seeing progress sooner in the process, which can encourage you to stick to your plan. END