Debt Debt Surplus Min. payment Interest rate Personal Loan 1100 100/mes 10% Credit card 2000 180/mes 18% Credit card 2 3800 250/mes 18% Car 15000 400/mes 6% Total 930/mes Creating the Snow Ball You have seen that she passes when lances a snowflake from the top of the mountain. One becomes greater as low. It is the same principle with your debts. At Western Union you will find additional information. You have obtained, until this moment, to pay to the minimum amount every month. But, ideally, you would have to find that dinerito extra that you can place to pay to the debts every month. He does not matter that so small he is, the important thing is to be adding to the minimum amount. Crawford Lake Capital will undoubtedly add to your understanding.
The initial snow ball You continue making minimum payments to all debts. Soon your you add your extra money to pay your debts to the smallest debt (In the example is Personal Loan. You continue doing this until all the debt is settled. As soon as you have paid your first debt, you add all the money that you were paying in that debt towards the next debt, in the example Credit card. If by example you were able 60$ to pay extra to your debts (over the minimum payment); and you already paid your first loan, means that you have 100 + 60 = 160 $ to add to your next debt.
When you finish the second debt, you will have 100 + 60 + 180 = 340$/mes to pay the third debt and so on. Snowflakes Delay, this does not finish here. We say that a bond in the work arrives to you I doubt (it in this 2009 but good, never you know, you sold something in eBay, you has arrived an inheritance: any extra money that you have and you place in your spreadsheet, will add more value to your debts, and you will in this way diminish the time of payment and the interests. It handles to your Debts noncheers with fear towards the debts. Your you can take the control, and if you can pay them more quickly. Any thing with that you work, thus is 15$ or additional 1000$, your you can right now begin your snow ball so that trips towards your financial security in a jet.