We recently provided more insights on the debt snowball payment method when our founder, Paul Paquin, took a moment to provide details on how the credit card bill payment process eliminates debt as fast as possible. If you are stuck in debt hell, paying only the minimum on each bill per month, take a look at the video below, and check out these tips for more.
What is the debt snowball payment method?
This concept (that we have detailed in the past) is designed to radically change the way you approach your credit card debt and your personal finances in general. The debt snowball payment method has been proven repeatedly in the past to help those with severe debt to recover.
The process works like this: Start with a budget calculator, then determine if there is anything in your expenses on a monthly basis that is not necessary and can be eliminated (extra TV subscription services, data you don’t use in your cellular plan, more ideas here). After determining what you have available in your budget, determine which of your credit card accounts has the lowest balance or the highest interest rate, and begin to pay that bill down more aggressively, while paying off only the minimums on your other credit card balances. Try to use only the available balances of your other cards during this process. As the balance on the credit card you are paying begins to go down, you will create new cash flow and a small amount of cash for a rainy day. Once you have paid off that card balance, move on to the next card with the lowest balance or highest interest rate. By this time, you should notice a boost in your FICO credit score, and the feeling of accomplishment that tackles your stress will give you the strength to keep going.
Interview with Paul Paquin, detailing debt snowball payments
How to know if it is time to seek debt settlement
After you have completed the Golden Financial Services free Budget Calculator, you can go straight to the Debt Snowball Calculator to determine if you are able to pay down more than the minimum on one of your credit cards.
If you still can’t make the math add up, that’s ok! But missing a few minimum payments each month can very strongly hurt your credit score, and it may be time to seek debt counseling. Make no mistake, debt consolidation services will also hurt your credit score, but the sacrifice of your temporary score for the sake of financial well-being is always worth it.
Take a look at more posts from our blog if you are wondering how the debt settlement process works.
____________________________
If you found our blog looking for financial advice or assistance with credit card debt relief or debt consolidation, call Golden Financial Services today at (866)-376-9846 or info@goldenfs.org. You can check out the rest of our blog here, and do your research on our services here. Let’s talk soon!
