06:29 15 September 2013
At some point in life, you might find yourself under a mountain of debt and seemingly no way to claw out from under it. Such a realisation can be depressing, and anyone who has suffered from even more minor depression knows how difficult it is to fight. A debt elimination practice, called debt snowfall, is created in such a way that you can see progress, which keeps you committed and on target to get out from under suffocating debt loads.
Debt snowfall is a way to explain the concept of paying off debts a little bit a time by focusing on the smallest debt first. By focusing on the smallest amount of debt, you pay it off faster and then feel successful in your quest to eliminate debt because you have irrefutable proof that you eliminated a bill, even if it wasn’t the most expensive one. Debt snowfall was given the name because of the fact that the tiniest snowflakes add up to snowfall that blankets everything. It could be inches or feet of snow. No matter how little money you have, the premise still works. The amount of time it takes to pay off the bills using the debt snowfall method might vary depending on individual circumstance, but it definitely can work.
You may have heard that you should select the bill with the highest interest rate when you are trying to pay off bills. Sometimes this also is the smallest bill you owe and it works out well, but other times you can’t afford to pay much extra on a bill like that, which means you’ll be paying on it a long time before you see any evidence of progress. Since this can be depressing for people who are plagued by extreme debt, the debt snowfall method provides a better psychological incentive to keep paying down debt.