Pay Off Credit Cards: Snowball Method

Table of Contents

Pay Off Credit Cards – Snowball Method

A popular way of paying off credit cards is the Snowball Method.

Unlike the more traditional method of paying off credit card debt in order of interest rates (highest to lowest) – the Snowball Method involves paying off the smallest balances first to get an immediate sense of success. Depending on your balances and interest rates, this method may cost you more in interest fees.

Warning, this form of debt repayment should only be undertaken if you can do it and keep all of your other debts and bills paid and up to date.*

To make the Snowball Method work – you have to stop using your credit cards – and commit yourself to a cash-only life style. Before you begin the Snowball Method, we recommend you set up an initial emergency fund.

Start by gathering of all your credit card bills together and record them showing type of credit card, balance owing, minimum monthly payment, and interest rate. Organize the list by the balance owing (lowest to highest).

This is a sample of what it might look like:

Snowball-Method

Determine how much, in addition to the monthly minimum payment of $200.00, you will be able to consistently put into the plan. For this example – we will use $500.00 over the monthly minimum $200.00, which means that every month you would be putting $700.00 towards your credit cards.

In month one – you would:

  1. make the monthly minimum payments on all of the outstanding card balances
  2. pay off the lowest balance card – the Gas Credit Card
  3. apply the remainder on the next smallest card – the Department Store 1 Card

In month two you will:

  1. make the monthly minimum payments on all of the outstanding card balances
  2. pay off the amount owing on the Department Store 1 Card
  3. apply the remainder to the next smallest card – the Department Store 2 Card

For each subsequent month, you will continue to pay the monthly minimum payments on all the outstanding cards – and put the rest of your Snowball money on the credit card with the lowest balance.

As you can see, the Snowball Method provides fast success, and as each card is paid off, the sense of achievement grows – making it easier to stick to the plan.

Snowball Method Summary:

  • stop using your credit cards,
  • set up an initial emergency fund,
  • make minimum monthly credit card payments on all outstanding cards,
  • put the remainder of your monthly Snowball money on the credit card with the lowest balance,
  • continue paying off credit cards in order of their total balance (lowest to highest), and
  • stick with it!

* If you are too far in debt for your income to handle repayment, we recommend you speak with a Bankruptcy Trustee. In the Greater Toronto Area, you can book a free consultation at any of our six locations. Our Certified Professionals will go over your finances with you, and explain all of your options to you.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

Very knowledgeable, helpful and fast service
Anthony Mcfeat
1701299046
I am so delighted to have found this company. They are the best. Everyone in the office is very nice never to busy to assist you. Thank you David Sklar and Shirley and associates for being you. 😊🌺😊
Deborah
1701263894
Trina was amazing and quick. No judgement was made and they all made me feel I made the right decision. Would highly recommend them
Crystal Minaker
1701222756
Trina was very easy to work with. Any questions I had were answered promptly. What seemed like a complicated process was explained in a clear manner that wasn't at all intimidating. It made for a more comfortable experience during a turbulent time.
Eldon Aubie
1701134421
Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
1700968057
I had Shirley and Kim take care of my finances. From the very first moment I spoke with Shirley I could sense how caring, professional and patient she was. She was also very understanding with my lack of financial knowledge and never made me feel dumb as some other companies have.Her and Kim were always very quick to respond to emails, always available if I called and answered my abundance of questions in such detail that I now believe I have a thorough understanding of how finances work. I am hopeful about my fresh financial start and very grateful I had the privilege of meeting and working with these two beautiful women.I also spoke briefly with Richard over zoom and he to was extremely friendly, patient and made sure I was well taken care of.I could not recommend David Sklar and Associates more. Thank you again.
Shayleen Muzi
1700875951
Good professional team! Jennifer is the best, helped me through everything and answered all my questions. Made the process easy! Would recommend Jennifer and the team at David Skylar.
gary round
1700868378
Christine and her team are amazing and professionals. I called for help and she responded right away to help me.thank you and I really appreciated for everything you do.
Marcelina Sunas
1700837681
Thank you so much for the helpYou took away the most stressful things in our lives which was our dept you guys are amazing and would recommend you to everyone
Kaitlyne Sunas
1700833567
The staff here are fantastic (Cori handled my visit) and are willing to go above and beyond to help people who need help, I recommend them 100% for people who are looking to move on in good standing.
Vito De
1700805574
js_loader
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

Contact Us