This method is perfect if you’re overwhelmed by multiple debts and unsure where to start. By focusing on clearing your smallest debts first, the Snowball Method helps you build momentum and motivation.Understanding the Snowball MethodHere’s the gist: Prioritize your debts from smallest to largest balance, disregard the interest rates for now, and concentrate on knocking out the smallest debts quickly. Start by listing all your debts, ensuring minimum payments are maintained across the board. Any extra cash you have should go towards the smallest debt until it’s paid off, then you move to the next one.Example ScenarioImagine you have:A $500 credit card debt with a $25 minimum payment.A $2,000 personal loan with a $50 minimum payment.A $7,000 car loan with a $150 minimum payment.With an extra $200 monthly, first tackle the credit card by combining the $200 with the $25 minimum for a total of $225 monthly payments. Once cleared, apply that $225 to the next debt—the personal loan.BenefitsThe Snowball Method offers quick victories, boosting your morale and encouraging you to keep going. It’s straightforward and keeps you motivated, especially beneficial for managing and clearing multiple debts.ConclusionThat’s the Snowball Method, an efficient way to achieve debt freedom by focusing on small, manageable victories.