Debt Snowball Method: Does It Work? | Zero Debt
Does Dave Ramsey's Debt Snowball Method Work? - blog | zerodebt.co.za

Unlock Financial Freedom: Debunking Dave Ramsey’s Debt Snowball Method

If you have a lot of debts in your name, you might be feeling overwhelmed. However, financial guru Dave Ramsey swears by what he calls the debt snowball method, which is a strategy to pay your debts systematically from smallest to largest and building momentum. 

Many argue that the snowball method is highly effective because it helps you build your confidence to believe that you can overcome the mountain in front of you.

What Is The Snowball Method?

The snowball method is a system whereby debts are paid off in order of smallest to largest, irrespective of the interest rates involved. 

The way to use the snowball method is to first make a list of all the debts that you owe in order of magnitude, ranging from the smallest to the largest. Thereafter, ensure that you pay the minimum due on every debt every month. Then, take whatever extra money you have and throw it at the smallest debt to wipe it out as quickly as possible. 

Once you’ve paid off the smallest debt as quickly as possible, you then take that extra money and the money that you would have used to pay off the smallest debt and contribute it to the second smallest debt. 

As each debt is paid off, the money that you now save can be rolled into paying off the next biggest debt on the list until eventually all of your debts are paid off.

Why Do People Believe The Snowball Method Works?

The snowball approach is widely endorsed because it gives people who are feeling overwhelmed by debt the psychological momentum and drive to keep paying off their bigger debts. By eliminating the smallest debts first, it helps the indebted individual believe that repaying the rest of their debts is possible. 

The simplicity of the snowball method is what makes it easy to follow and eliminates the confusion that can overwhelm a person who is trying to deal with multiple debts simultaneously. Furthermore, since results are evident quickly, the small debts that must be paid off first provide quick wins that contribute to motivation.

However, one of the greatest advantages of the snowball method is that it systematically trains the indebted person to better manage their behaviour and overcome their challenges in dealing with personal finance. 

By changing your financial habits and encouraging regular debt repayments, it is possible to turn your situation around and become financially free. 

Here at Zero Debt, we endeavour to help you overcome your debt problems systematically and strategically. Contact us today to get help now.