In his book, The Total Money Makeover, Dave Ramsey recommends a process he calls the debt snowball for paying off your bills. He suggests you list all your debts and then pay as much as you can toward the one with the lowest balance first and when it is paid off, move on to the next smallest bill.

Why the lowest balance first? Because, by starting with the smallest bills you build momentum, just like a snowball that grows and builds speed as it goes downhill. It also creates a pattern of success that motivates you to keep going. Continue reading →