 TITLE: Debt Snowball Strategy: How Does It Work? CONTENT: How to Pay Off Debt Using the Snowball Strategy\n-----------------------------------------------\nTo give you an idea of how the debt snowball method works, here's an example based on some sample debts. This is what you'd pay if you continued making minimum payments on your existing debts:\nNow, let's say you employ the debt snowball method, tackling Credit Card No. 2 first, then Credit Card No. 1, and so on. Because you're snowballing each payment into the next debt, you don't actually need to pay anything more than what you're already paying to save time and money. Here's what the numbers look like if you don't add any extra payments.\nUsing the debt snowball method alone with no extra payments, you'll be debt-free more than five years earlier, and save more than $4,300 on interest.\nIf you can manage to pay extra, you'll become debt-free even sooner and save a lot more on interest charges. Here's what it looks like if you pay an extra $150 per month toward your debts.\nAs you can see, even if you can't manage to put any extra money toward your debt, using the snowball method will result in you paying off your debts more than five years sooner, and you'll save more than $4,300 in interest.\nBut if you can manage to put even a little extra money toward your payments each month, you'll become debt-free even faster and pay thousands less in interest. END