While Funding the Snowball – Consistency is Key
- You can apply a random amount (Say $50 or $100) as the extra payment to the first debt’s monthly payment.Whatever amount you choose, be certain it is attainable each month.For example, you may be a commissioned sales person and in the winter you earn less than in the summer.Take such conditions into consideration when designing your strategy.
You may want to choose an amount that you can comfortable pay all 12 months, or you may choose a lower amount and add even more to the payment during your better earning months.
- Another way to determine the initial extra payment is to take the first loan amount and double it. For example, if the minimum for the first loan payoff is $125.00, you could decide to start with $250.00 as the initial snowball payment.
But Where Do I Get the Money?
Okay so that all sounds good – but you may be asking “Where do I get the extra money for the payment?”
- You could get a part time job.
- You could tweak your budget.
- But there is a third way: “Accelerate Your Debt Payments“
