Small Wins, Big Results: How Nurses Can Tackle Credit Card Debt with the Snowball Method

If you are like 30% of Americans, you are carrying up to $5,000 of credit card debt. Many nurses, including myself, are carrying debt. I used to pride myself being debt free outside of my mortgage, but in 2022 circumstances changed. I found myself swiping my credit card for moving expenses, home renovations and more. 

In 2023, my husband and I have resolved to get a handle on our debt and aggressively climb our way back to financial wellness. We learned a lot about debt repayment strategies along our debt repayment journey. One popular method of debt repayment is called the “snowball” method. You may have heard of the snowball method of debt repayment before from popular financial experts like Dave Ramsey. 

The snowball method of debt repayment has become a popular strategy for individuals looking to get out of debt quickly and effectively. The snowball method is straightforward but does require a bit of strategic planning. Keep reading while I break down the snowball method of debt repayment for you. Read until the end for tips and strategies on incorporating it into your financial game plan.

The snowball method involves paying off your debts one at a time, starting with the smallest balance first. This method can be quite effective for those of us with multiple debts because it allows us to see progress quickly and build momentum. As each debt is paid off, the amount of funds you were paying toward the now paid off debt can then be directed towards the next smallest debt, and so on, until all debts are paid off.

 Psychologically it feels great to see multiple smaller debts being eliminated. It’s also rewarding to see the payment amounts being freed up to snowball into the next debt. The snowball method helps you feel great about the small wins along the way to keep your motivation high. Debt snowball momentum increases with each debt paid off. The snowball method keeps you on track so that you keep going until you reach your goal of being debt free again! 

Incorporating the snowball method into your financial plan may seem daunting at first, but it can be an effective way to get out of debt and achieve financial freedom. Here are some tips and strategies for using the snowball method to pay off your debts:

1. Create a list of all your debts: Make a list of all of your debts, including the name of the creditor, the balance owed, and the interest rate. There are free and paid worksheets available online that can help you track your debt repayment progress. If you are interested in using the form I created, click the link to go to my Etsy shop.
2. Organize your list by balance: Arrange your debts from smallest to largest based on the balance owed.
3. Make your minimum payments on all debts: Continue making minimum payments on all of your debts to avoid late fees and negative marks on your credit report.
4. Direct extra payments towards your smallest debt: Take any extra funds you have available and direct them towards the smallest debt on your list.
5. Celebrate your progress: As you pay off each debt, take a moment to celebrate your progress and stay motivated to continue with the snowball method.
6. Direct your freed-up funds towards your next smallest debt: Once a debt is paid off, take the monthly payment amount and direct it towards the next smallest debt on your list.
7. Repeat the steps until all debts are paid off: Continue this process until all of your debts are paid off, starting with the smallest balance first and working your way up to the largest balance.
8. Avoid taking on any new debt: To ensure the success of the snowball method, it’s important to avoid taking on new debt during the repayment process.

In order to speed up the debt snowball process and if you have the flexibility to, pick up extra shifts or work overtime to direct more funds towards your debt repayment plan. Additionally, the snowball method can be combined with other debt management strategies, such as budgeting and negotiating with creditors, to maximize your progress towards financial freedom.

In conclusion, the snowball method of debt repayment can be rewarding and an effective way for individuals to pay off their debts quickly and efficiently. With a few simple steps and some determination, this method can be incorporated into any financial plan. By starting with the smallest debt first and working your way up, you can build momentum and achieve financial freedom in no time. Make sure you do your due diligence and research as much as you can to feel comfortable with the steps listed here. Seek out help from a financial advisor if you need more guidance. Getting out of debt can feel overwhelming, but if you read this far then you are surely on the right path! 

If you are looking for a different way of paying off your debt that focuses on the interest rate versus the total balance, click the button below to check out my blog post about the Avalanche Method of Debt Repayment.