Using CheckMATE as a debt reduction tool

You are probably familiar with the debt snowball concept.

If not, it’s simply writing down all of your bills with the amount due on each. Dave Ramsey’s plan directs you to order them from the smallest to the largest (this usually gives you the most momentum as you start since many smaller bills often get knocked out right away). Other experts recommend that you order them from the highest interest rate to the smallest. They argue you’ll pay off the higher interest loans first and save more money.

Once one bill is paid, the amount you were paying goes to the next one and you have more and more to pay on each bill as time goes by.

To use CheckMATE with your snowball plan, make a separate spending category for each bill. Then make another spending category and name it “Snowball”. You’ll also make other categories for things you need or want to fund such as your mortgage, groceries, utility bills, etc.

As you receive income, allocate the money according to your budget. Anything extra goes into the snowball category. Now when you pay your bills, continue paying the minimums on all of them except for the one you’ve targeted to pay off. When you pay it, add all the money in your snowball category to it as well.

You should be on your way to paying off all your bills in no time!!

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