Where to find extra money for your debt snowball
The snowball works with any amount, but every extra dollar makes it roll faster. In our example plan, finding $100.00 more a month gets you out of debt 4 months sooner and saves $319.54 in interest. Here's what a little more would do for your plan, and where people usually find it.
What a little more each month does to your plan
Using our example plan (four debts, $200.00 a month extra). Build your own plan and this box will use yours.
Right now you're debt-free in 2 years 3 months and pay $1,816.56 in interest.
| Extra each month | Debt-free sooner by | Interest saved |
|---|---|---|
| +$50.00 | 2 months | $177.35 |
| +$100.00 | 4 months | $319.54 |
| +$200.00 | 7 months | $535.49 |
| +$500.00 | 1 year | $911.08 |
Start with where the money goes
Go through one month of bank and card statements and sort every charge into needs, wants and things you forgot you were paying for. Most people find money in the third group first. You don't need a strict budget to do this, just an honest look.
Cut the easy things
- Subscriptions and memberships. Streaming, apps, boxes, the gym you don't visit. Cancel what you wouldn't sign up for again today.
- Bills you can renegotiate. Phone, internet and insurance prices often drop when you ask, or when you compare quotes and switch.
- Food. Eating out and delivery are usually the biggest flexible line. A few more meals at home each week adds up fast.
Bring in more
- Sell what you don't use. Furniture, electronics, tools and clothes can fund a month or two of extra payments.
- Extra hours or side work. Overtime, freelance work or a weekend job, with every dollar of it going to the debt.
- Windfalls. Tax refunds, bonuses, raises and gifts. Putting even half of each one toward your target debt makes a big difference.
Two things not to cut
- A small emergency fund. Without one, the next car repair goes on a card and undoes your progress. Many people keep a starter fund of about a month's essentials before going all in.
- Your employer's retirement match. A match is an instant return that beats paying down almost any debt, so keep contributing enough to get it.
Where the extra goes
Every extra dollar goes to your current target debt, the smallest one with the snowball, on top of its minimum. When that debt is gone, its payment and your extra roll to the next one. The step-by-step guide walks through it.
Put your number in the plan
Once you know what you can add, put it in the calculator's “Extra payment each month” field and watch the debt-free date move. Build your plan in about a minute.