What exactly is snowballing your debts and how can you beat credit card debt by doing it? This is an easy question to answer, as it involves looking at all of your credit cards and going with the one that has the lowest interest rate. Beating credit card debt is easy, but you have to follow a plan in order to stay out of debt forever. Before we begin explaining this in depth, it is important to note if you do have over $10,000 of debt that you can get it erased legally. But for those who have less, look at snowballing your debts into one small payment.
If you have more than one card, then it is likely that beating credit card debt is going to be hard. This is because if you decide to make the minimum payment on more than one card, it is going to be costly. And since different creditors will charge different fees and interest rates, this can become quite confusing too.
What is the best card to use when you’re trying to snowball your debts? A 0% interest rate card. You can get this by calling your creditor to find out if they have a 0% interest rate on all their balance transfers. Your debts will stop accumulating the second that you transfer it. Not every creditor has this option, but you can call to find out if the 0% interest rate will apply to a balance transfer as an incentive to group your debts into one small payment or “snowball” them. This 0% APR will generally lasts only 12 months, but this gives you time to plan further.
There are many success stories of people who had less than $10,000 in debt who were able to make a financial plan with their accountant and creditor to get themselves out of this situation. You may have to live frugal for a year or two, but this can help you in the long run. It is really important to have a future mindset when you’re paying off your debts.