Love this! Plus, the visual demonstration really breaks it down.
The snowball method…
The "snowball method," a phrase coined by financial advisor Dave Ramsey, is having a moment on TikTok. The concept is pretty simple: You tackle your debt from smallest to largest, paying the minimum on your biggest debts and paying more on the small one, in order to eliminate it. When that payment is gone, you take the money you were using to pay it and roll it into your next smallest debt, and on and on. Basically, you start building momentum – you know, like a snowball rolling down a hill.
TikTokers are sharing how they used the method get out of debt. In one clip with 1.4 million views, @wheretfisallmymoney explains how she paid of $10,000 of debt in just 19 months using the snowball method without going over $500 per month in payments...
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