The SNOWBALL EFFECT:
The Snowball Effect has been a popular way to reduce and eliminate debt. Many experts agree that the snowball method develops confidence and momentum as you pay off your credit obligations.
Glen Kelleway, FLC’s Credit and Debt expert advocates the use of the snowball effect to eliminate debt.
Step 1:
- List all outstanding debt amounts, minimum payments and interest rates.
Step 2:
- Decide how much you can add to the total minimum payments each month.
Step 3:
- Pick one debt to focus on. Pay the minimum payment + the amount you committed to in Step 2.
Step 4:
- Once the debt in Step 3 is paid off. Apply what you were paying towards the next debt you want to focus on.
Step 5:
- Repeat until all cards are paid off.
Contact Alphil Guilaran today to learn more about how we can serve and develop solutions for you, your family or organization.
Alphil Guilaran
Executive Director
604.687.7773
