The Snowball Method: How it Got Me Out of Credit Card Debt


In preparation for purchasing my first home I went on what I referred to as, a debt cleanse. I cleaned up my credit report, paid off loan balances, and paid 100% of my credit card debt all within a matter of about six months. As a result, my credit score increased drastically. However, the most rewarding aspect was the feeling of being debt free–in terms of my credit card.

Being the huge fan of Dave Ramsey that I am, I just had to put his infamous Debt Snowball Method to test. Here’s how I managed to do it:

The first step is to list all of your debts and the corresponding amounts owed, in order from smallest to largest. In my case, I wanted to focus solely on credit card debt, however this method can work for any type of debt. Here’s an example:

Medical Bill: $350 ($40/m. payment)

Capitol One CC: $948 ($45/m. payment)

Bank of America CC: $1,450 ($60/m. payment)

Chase CC: $1,700 ($65/m. payment)

Car #1 Loan: $9,812 ($215/m. payment)

Now comes the fun part! Start with the smallest debt, which in the case of our example, is the $350 medical bill. Attack that debt as soon as possible, paying it in full. In the meantime, make sure you are still making the minimum payments on the other debts.

Once the medical bill is paid off, move on to the next debt, which in this case is the Capitol One credit card. Take $350 (freed up from the medical bill), plus $45 (the minimum payment for the C.O. cc), and apply that total, $395, to the Capitol One credit card bill each month. By doing this you’ll have the Capitol One credit card paid off in less than three months.

Now on to the next debt. Take the $395 plus $60 (BOA cc minimum payment), and apply that total, $455, to the BOA credit card. In another three months, you’ll have that debt paid off as well.

Got the hang of it yet? Great!

Keep going down the list, using this method, until each debt is paid in full! And don’t forget to celebrate your progress! Each time you pay off a debt, you’ll be able to breathe a little easier.

Best of Luck,

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  1. Candy says:

    Wonderful idea and something easily laid out on paper. Start with small goals and soon the big one is finished or paid off.

  2. Danielle says:

    Once I started to accrue debt, I heard about this method and started using it myself. It was a lot easier to get rid of my bills by removing the places I owe money one by one. This method is a good one and I’m glad I’m not the only one who uses it. Best of luck to you getting rid of yours and attacking the heck outta the car payment. You got this!

    Danielle | <3 <3

    1. The Corporate Mom says:

      Thanks, Danielle–the snowball method helped to completely restore my finances.

      P.S. I absolutely love your blog! I’m literally drooling over all the food pics 🙂

  3. Lisa says:

    very smart! this will help a lot of people

  4. Christine says:

    This is AWESOME! I’ve heard of this method before but didn’t really know the details of how to do it. Totally doing this! Thank you!

    1. The Corporate Mom says:

      Thanks for reading Christine! If you ever need to knock out some debt, give this method a try.

  5. Marlynn @ UrbanBlissLife says:

    I’ve heard so many people find success with the snowball method. Congrats to you for paying off debt!

    1. The Corporate Mom says:

      Thanks Marlynn! I heard about it years ago. I’m so happy I gave it a try.

  6. Hilarie Zimbicki says:

    That’s a great idea! I honestly don’t know much about Dave Ramsey’s methods, but of heard good things.

    1. The Corporate Mom says:

      Thanks for reading Hilarie! Dave is one of the most trusted financial experts. You should check out his site.

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