What is the debt snowball?
The Debt Snowball Tool in SmartDollar helps you apply the debt snowball method by keeping your debt payoff goal in one place and helping you track your progress as you eliminate debt.
The debt snowball works by paying off your non-mortgage debts from the smallest balance to the largest balance. As each debt is paid off, you roll that payment into the next debt, creating momentum until you're debt-free.
Access the Debt Snowball Tool
- Sign in to SmartDollar.
- Select Money Tools from the left navigation.
- Select Debt Snowball Tool.
- Select the Tool tab.
How to set up your debt snowball
Once you're in the Debt Snowball Tool:
- List all of your non-mortgage debts.
- Arrange them from the smallest balance to the largest balance.
- Make the minimum payment on every debt except the smallest one.
- Put any extra money toward your smallest debt.
- Continue updating your progress as you pay off each debt.
Track your progress
As you work through your debt snowball, the tool helps you monitor your progress by showing:
- The total amount you've paid off.
- How much debt remains.
- Your projected debt-free goal.
- Your payoff progress over time.
Review your progress regularly to stay motivated and celebrate each milestone along the way.
Update your debt-free goal
You can adjust your payoff plan at any time.
- Open the Debt Snowball Tool.
- Locate the Debt-Free Goal card.
- Select Edit Goal.
- Update your goal as needed.
Need more help?
The team is happy to help. Submit a request here.