The Concept of a Payment Snowball

The secret to getting out of debt fast is using the momentum and power of a payment snowball.

The Payment Snowball Secret

You can get out of debt faster than you thought possible using the science behind a snowball. The secret of how a payment snowball works is explained in this one minute video.

Transcript:

The Concept of Payment Snowballing:

Payment Snowballing can best be explained using a pie chart that represents debts. The size of this pie chart reflects the total amount of money being paid each month.

To get started: Assign a payoff priority to each debt. Make a commitment to pay each creditor the same amount each and every month. This is called a constant payment.

Look what happens when the debt with the highest priority (number one) is paid off. The payment that was going to priority number one is now added to the payment of priority number two. This is where the payment snowball begins. Increasing payment number two will shorten the payoff time and reduce the amount of interest being paid.

Look what happens when the debt with the second highest priority (number two) is paid off. The payments that were going to priority number one and number two are now added to the payment of priority number 3. The payment snowball is gaining momentum.

At this point priority number three will get paid off much quicker and a lot of money will be saved in interest costs.

Look what happens when three debts are paid off. All the payments that were going to paid off debts have been added to the payment of priority number four. The payment snowball now has tremendous power. Priority number four will get paid off very fast and a huge amount of money will be saved in interest costs.

Look what happens when there is only one debt remaining. All the money is now going to pay off the last debt. This is incredibly powerful. The payment snowball is at its absolute strongest. Priority number five will be paid off in record time. From this point on the maximum amount of savings in interest will be achieved.

❝I realized that with this tool I could be my own debt counselor!❞

I found myself in the predicament of high credit balances. I heard the ads on the radio and TV about debt counselors, and credit counseling companies. I did not feel safe, or comfortable about contacting these strangers and trusting them with all my information.

I did not have the time to go through their process and was suspicious of the true cost of their assistance. Then I found out about ZilchWorks, ordered it, installed it and realized that with this tool I could be my own debt counselor!

This program is so easy to use and does what all the other companies want to charge you for. I was able to work out my payment plan in the privacy of my home. ZilchWorks showed me exactly what to do to reduce my debt as quickly as possible. I am gaining back my financial freedom with ZilchWorks. Thank you Michael for creating this wonderful program.

Kathy McClain, Ed.S. Career Educator - Michigan

I found myself in the predicament of high credit balances. I heard the ads on the radio and TV about debt counselors, and credit counseling companies. I did not feel safe, or comfortable about contacting these strangers and trusting them with all my information.

I did not have the time to go through their process and was suspicious of the true cost of their assistance. Then I found out about ZilchWorks, ordered it, installed it and realized that with this tool I could be my own debt counselor!

This program is so easy to use and does what all the other companies want to charge you for. I was able to work out my payment plan in the privacy of my home. ZilchWorks showed me exactly what to do to reduce my debt as quickly as possible. I am gaining back my financial freedom with ZilchWorks. Thank you Michael for creating this wonderful program.

Kathy McClain, Ed.S. Career Educator - Michigan
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