The Best Way to Pay Off Your Debt

The Best Way to Pay Off Your Debt

This time-tested process will remove your biggest financial obstacle.

On your journey to financial freedom, you’ll eventually come to a place where you must account for bad decisions you’ve made in the past. To get through it, you need to find the best way to pay off your debt.

Heavy debt loads can cause a lot of financial struggle and take up an enormous amount of your monthly income. They can also trap you in vicious cycles of borrowing. On your road to freedom, debt can be the biggest giant standing in your way.

Fortunately, though, there is a way to defeat debt. It requires a lot of hard work, sacrifice and commitment.

And it will change your life.

Today, we’re going to learn the Debt Snowball method of paying your debt. My wife and I used this decades-old system to get out of debt, and it can help you find freedom too.

Here’s how the plan works: You’ll need to use a solid budget to organize your spending, and make sure you’re spending less then you earn. You’ll use this surplus to make accelerated debt payments in a targeted, systematic way.

There are five steps in the Debt Snowball process. We’re going to go through them individually to help make it simple.

But first, I want to tell you about Stress-Free Finance, a free program we have created to help you make sense of your overwhelming financial life. This five-part video series has short, simple lessons to help you solve money problems so you can stop worrying and build a better future.

Here’s a preview of the free video series:

Play Video about Stress-Free Finance

Now, back to the topic at hand:

The process I’m about to describe is the best way to pay off your debt. Here are the five steps you need to take to make it happen.

1) Pick a strategy.

There are two schools of thought about how to pay off debt. Some people think you should pay the smallest balances first, and others say you should pay the ones with the highest interest rate first. There are valid arguments for both. But unless you have a few debts with extraordinarily high interest rates, you’ll probably be better off by focusing on your smallest debts first.

2) Pay the minimums.

If you have multiple debts, make the minimum monthly payments on all of them. )These payments should already factored into your budget.) Paying the minimums won’t get you out of debt quickly, but it will keep your accounts current and help you avoid penalties and fees.

3) Target one debt.

Use your budget surplus to make additional payments on the debt at top of your list. The more surplus you have, the more quickly you’ll achieve a zero balance. Use any extra income you get to pay off this debt even faster.

4) Grow your snowball.

Once your first debt is paid off, you can erase it from your budget. This increases the amount of surplus you have to work with. Now, when you move on to paying your second debt, you’ll have more money at your disposal.

5) Repeat the process.

Each time you pay off a debt, erase it from your budget, increase your surplus and move on to paying the next debt on the list. Over time, your snowball will grow quite large, and you’ll be able to make big payments on your final debts until they’re gone for good.

Depending how much debt you have, your payoff process could several years. But as you watch your balances shrink down to zero, you’ll pick up momentum and to plow through until you reach your destination – complete financial freedom.

You can get there, I promise. You just have to be willing to put in the work.

The debt snowball is the best way to pay off your debt.

About the Author

Brian Jewell

Brian Jewell

Brian Jewell is the founder of 30 Days to Financial Freedom. He has helped thousands of people start the journey toward living the lives they were made for.

More Articles

Meet the Budget Genius

Meet the Budget Genius, the simple and powerful tool from 30 Days to Financial Freedom. This introduction will show you how the system works.

One Month to Change Your Financial Life

Learn to build your budget, start your savings, defeat your debt and fund your future. You can begin to change your financial life in just 30 days.

Introducing 30 Days to Financial Freedom

In just 10 minutes a day, this new online program will help you live the life of freedom you were made for.

Little Things Make a Big Difference

Financial freedom comes from making good decisions in small areas of life.

Money Can’t Solve Your Heart Problems

Don’t let the pursuit of financial freedom lead you to dark places.

30 Days to Financial Freedom Advantage

Self-help books and university-style personal finances courses can be a drag. Learn more about the 30 Days to Financial Freedom advantage.

Protect Yourself From Financial Emergencies

Learning to anticipate problems will help keep you safe in a storm.

30 Days to Financial Freedom is Free for Pastors

If you work in ministry, we want to come alongside you and help you succeed. That’s why 30 Days to Financial Freedom is always free for pastors.

Worrying about money makes life miserable.

30 Days to Financial Freedom gives you biblical insights and practical tools to eliminate financial stress and build a prosperous future.

About the Author

Scroll to Top
Stress-Free Finance
Stress-Free Finance

Get the free videos series!

Stress-Free Finance

Get the free videos series!

Stress-Free Finance
Stress-Free Finance

Get the free videos series!

Stress-Free Finance

Get the free videos series!

Fighting about Money?

Our free video series “Money-Proof Your Marriage” will help you stop arguing and start building a more prosperous relationship.

Stressed Out?

Our free video series “Stress-Free Finance” will help you find solutions to your money problems so you can stop worrying.

Stressed Out?

Our free video series “Stress-Free Finance” will help you find solutions to your money problems so you can stop worrying.

Pastors Free Laptop Logo

christmas gift card sale

Give the Gift of Financial Freedom

Pastors Free Laptop Logo

NEW YEAR SALE

Start 2022 in Financial Freedom!

Pastors Free Laptop Logo

Black Friday Sale

Ends in:

Days
Hours
Minutes
Seconds
Introducing 30 Days to Financial Freedom

Tired of money problems?

We’ll help you stop worrying about money and start building a better future in just 10 minutes a day.

Introducing 30 Days to Financial Freedom

Thinking it Over?

Save 15% on your Full Membership when you join today. Your discounted will be applied automatically.

Hope & Freedom Logo Card

Register for free course access.

Already have an account? Log in here.

30DFF White Logo Retina

Log In

30DFF White Transparent Logo

Log In

30DFF White Transparent Logo

Your first video is on the way!

Check your email for a message from course@30dayfreedom.com. We’re sending you a link to the first video in the series “Stress-Free Finance.”

Ready to get back to what you were reading?