Snowball method: have more money available for your mortgage
Would you like to find a really effective method to save and have more money available? Would you like to find effective ways to settle your debts early? If your answer to these questions was yes, this is the long-awaited article! Here we tell you how you can pay off all your debts to have more money available at the end of the month and dedicate yourself to the most important debt: your mortgage.
If you have a lot of debts, we know how stressful it usually is not to know where to start or how worrying it is to want to have more money available to settle the most important debts and not achieve it. So, in order to make your life easier, we bring to you this article in which you will learn all about the Snowball Method , which has been proven to be the most effective method to settle debts. Pay attention!
1. Create an Excel document
The first thing you have to do is open a new sheet in Excel and create the following columns: Debt name, Total amount of debt, Minimum monthly installment, Monthly interest and Comment.
This document will help you keep track of your debts month by month.
2. Order the debts
Here the organization is very important. The key to making this method work is to order your debts from the smallest to the largest in the amount you need to pay.
Now the debt that tops your list is the one with the smallest balance and at the end of the list is the debt with the largest balance to pay.
3. Remove the sum
Now, take out the sum of the Total Amount of Debt column and the Minimum Monthly Fee. This will help you have a better perception of the total amount of money you need and the minimum total monthly amount you need to pay each month.
4. Start paying
At the beginning of each month pay the stipulated total monthly minimum installment of your debts. But do not forget that you should always allocate a greater amount to that first debt on your list (the smallest). Try to pay all you can of that debt (the smallest) until you finish paying it in full.
5. Keep paying
Once you have left that first debt, continue paying the second one, allocating the extra amount you paid in the first one to this one. Always remember to continue paying the monthly fee for all other debts and repeat the process until finished.
If you pay off debt for debt, you will see how soon you will have that amount of money available to pay off your mortgage.
If you need more advice on the subject, do not hesitate to contact us! We will resolve all your doubts in this regard so that you settle that debt as soon as possible. We also invite you to click on the image below to learn more about mortgage loans and achieve your immediate goals.