Baby Step 2: Pay Off All Debt (Except the House) Using the Debt Snowball
Next, it’s time to pay off the cars, the credit cards, and student loans. Start by listing all of your debts except for your mortgage. Please put them in order by balance from smallest to largest. This is called the debt snowball method, which you’ll use to knock out your debts individually. Our class, Financial Peace University, shows you how to pay off your debt using the debt snowball method and start saving for the future.