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Pay Down Your Debt Fast: The Snowball Effect

Pay Down Your Debt Fast: The Snowball Effect

    Paying for school sucks.

    You end up getting a decent education (maybe), but come to quickly find out that most of what you learned is not exactly everything you need in the real world. In fact, you may find that you learn more in the first six months at your new job than you did during your entire time at school!

    What hurts worse is that most people, at least in the US, are paying more every year for school. This means larger and larger amounts of education debt as well as consumer debt. Think of all that pizza!

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    But, the size of your debt doesn’t have to scare you. Trust me; it scared the hell out of me for a while. This is how I dealt and continue to deal with it.

    Budget

    A debt snowball doesn’t work without a good budget in place. I know that this may be the last thing that you want to hear about getting rid of your debt, but seriously, it won’t work without a budget. I didn’t realize the strength of budgeting until I got on the You Need a Budget bandwagon and followed that “system.” This helped me see my life in the form of item buckets and a “Buffer” so I could get close to being a month ahead on all my bills.

    Having this leeway in your money is the first step to trying to find the little extra each month to pay down your debt fast. When you have the month buffer sitting in front of you, you can more realistically and with less fear, approach paying down your debts.

    Make the list

    Next, you need to know the exact amount of each of your debts as well as their interest rates and minimum payments. After you get this information you can make the list in either two forms:

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    1. In order from lowest to highest amount.
    2. In order from highest to lowest interest rate.

    To be honest, most people will tell you to pay the highest interest rate debts first. That makes sense for the most part, especially if you want to save money with some debts with ridiculously high interest rates. But, I chose to pick my lowest amount first.

    Why?

    Because I could get satisfaction of paying off one of my debts and see the effects of the debt snowball faster. That’s all.

    You should take it by a case to case basis though. Try to weigh how much you owe against the interest rate to see which method is better. You may even need to approach it a different way, like if you have a very low debt amount with a super high interest rate and a huge debt amount with a mediocre interest rate. You have to see which way you are paying more money in the long run, then avoid that way.

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    The law of three

    After you know your minimums and add them and everything else you need in your life to your budget, you should have some shillings left. If you don’t, this isn’t the post to tell you how to make more money. Instead, try to stick to the absolute essentials in your budget. If you have entertainment money; cut it. We will create some of that shortly.

    Now that you have some extra money un-budgeted for the month, you have to split it into three equal pieces for:

    1. Savings
    2. Debt
    3. Fun money

    Some debt gurus will say that you shouldn’t have any fun money, you should strictly concentrate on paying down debt and saving. I say, “screw that,” that is unless you are in dire straights and need out of debt in a hurry.

    This extra money you have for debt, that is the money that you will put on top of your minimum payment to your first debt in the list you made above. Once that first debt is payed off then you will move the minimum plus the extra money for debt to the next debt payment and so one.

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    See it? A snowball!

    Here is what is awesome. None of this accounts for you making more money during the month. As soon as you start pulling in any more money, you can throw it towards you debt, or use it as more play money, or buy some pizza. It doesn’t necessarily matter.

    Now calculate

    You can do this on paper, if you are like a crazy mathematics ninja, but I prefer the digital way because it is easier to keep track of and idiot proof. One of the best ways that I have found that works on Mac and PC is with the trusty ol’ Vertex42 Debt Reduction Calculator Spreadsheet. I first saw this thing mentioned on Get Rich Slowly in 2006, but it still holds true today. Since then I have migrated to an iPhone app called DebtPayoff Pro that is great. There are many more out there, but these are the ones that have worked well for me in the past and present.

    Now that you have a tool you can enter all your debt information, how much money you are going to throw extra toward your debt, and the starting balance date. Then you can get an idea of when certain debts will be paid off as well as when the total debt will be paid off. If you are putting away a decent amount of money extra toward debt, you are going to be very surprised at just how fast your debt diminishes.

    Now party

    Paying down your debt fast can feel like the biggest burden in your life, especially if you have a lot of it. The truth of the matter is, if you can cover your minimum payments right now and have a little money extra every month, you can put a serious hurtin’ on your debt.

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    CM Smith

    A technologist and writer who shares advice on personal productivity, creativity and how to use technology to get things done.

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    Last Updated on February 11, 2021

    Want to Get Free Product Samples Like Bloggers and Beauty Gurus Do? Read This.

    Want to Get Free Product Samples Like Bloggers and Beauty Gurus Do? Read This.

    Imagine receiving a regular supply of free samples through your letterbox?

    These free samples by mail could include things such as cleaning products, cosmetics and packaged food.

    Free samples are a great way to try out some of the latest products. One week you may have a new toothpaste to try – the next week you may be snacking on a delicious chocolate cookie sample.

    As the saying goes, variety is the spice of life. And by requesting free samples by mail (I’ll show you how shortly), you’ll have not just variety – but fun too!

    Tell Me More About Getting Free Samples Sent to My Door!

    So, it looks like I’ve caught your interest. That’s great news!

    Just before I introduce you to 10 places where you can get free samples by mail, let me clarify a couple of things.

    Firstly, all the places I’ll talk about are currently active in sending out free samples to consumers. (In other words, no links to out-of-date or dead pages!)

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    Secondly, location is key. If you live in North America, then you’ll have a wide selection of places to sign up to. In other locations (for example, Africa, Asia and Europe), you’ll have fewer choices – but free samples by mail are still a possibility.

    Lastly, to whet your appetite for the freebies, here’s a short list of product examples:

    • Pet food.
    • Beauty products.
    • T-shirts.
    • Greeting cards.
    • Wallets.
    • Snack bars.
    • Vitamins.

    Free Samples by Mail… Tell Me Where to Get Them!

    It’s now time to share my recommendations for the best sites to claim free samples from.

    Let’s start with…

    #1 SampleSource

      This company sends out boxes of 6-12 free samples about four times a year. Products include baby wipes, cereals and tissues. Register with SampleSource to be notified of the availability of their free samples. (Canada and U.S. only.)

      #2 Influenster

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        As their name suggests, Influenster wants to send free samples to you in exchange for you sharing about the products on your social media accounts. Once you’ve become a member (join for free!), they’ll send you a box of free goodies every few months. The more you share pictures and reviews of the products – the more free samples they’ll send you! (All major territories.)

        #3 PINCHme

          This organization will send you free samples in the hope that you’ll then go out and buy the equivalent full-size products. To receive regular boxes of free food, drink and cosmetic samples (and sometimes coupons), then sign up and create your profile. (U.S. only.)

          #4 House Party

            Thinking of throwing a house party? If yes, then be sure to sign up with this company. They’ll send you a box of ‘themed’ products and services that you can hand out at your party. Register with House Party. Wait for the fun freebies to be mailed to you. And then start sending out your party invites! (Worldwide.)

            #5 YoFreeSamples

              This site is a great resource for a whole host of free samples that can be mailed directly to your door (with no survey requirements!). You’ll find anything from books to perfume, with new offers listed daily. Head over to their site to see what’s currently available. (Mostly U.S., with occasional offers for other countries.)

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              #6 Magic Freebies

                The U.K.’s most popular freebie site. Register for their email newsletter, and they’ll send you a daily email with eight free sample offers. These include products such as disposable razors, dog bowls, and even fake tan! So, what are you waiting for? (U.K. only.)

                #7 SweetFreeStuff

                  Since 2002, this simple site has been linking to the best free sample offers currently available. To get started, sign up to their daily email newsletter, which contains links to the latest offers. As well as free samples, SweetFreeStuff also gives information on coupons and deals. (Worldwide.)

                  #8 Sample A Day

                    Would you like to receive a notification of a new free sample every day? Well, that’s the promise from this site. They claim to thoroughly research all offers, ensuring there are no catches or hidden surveys! From baby products to socks, this site is sure to have something for you. Registration is super-easy. Simply enter your email address. (Australia, Canada, U.K. and U.S. only.)

                    #9 Pretty Thrifty

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                      This site specializes in free beauty products, but also lets you claim free samples such as energy drinks, snack bars, and even magazine subscriptions. Pretty Thrifty has more than 85,000 followers on social media, so clearly knows how to attract free sample hunters. One thing that makes Pretty Thrifty stand out from most of their competitors, is that their email newsletter is available in daily, weekly and monthly formats. (Mostly U.S., with occasional offers for other countries.)

                      #10 CrazyFree

                        My final tip for getting the best free samples by mail, is Australian company CrazyFree. Their funky website offers big brand free sample offers, which currently include items such as Dolce & Gabbana perfume, Coke Zero, and Happy Dog pet food. To claim the offers, select the free samples you would like, and then complete their registration form. (Australia, U.K. and U.S. only.)

                        Receiving regular free samples by mail is a fabulous way of testing out the latest products on the market (and some that aren’t even on the market yet!)

                        You’ll impress your friends and family with all the free stuff you’ll be receiving. And take it from me… it’s a fun, free and rewarding hobby.

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