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Author: Stetson20 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308795  
Subject: Re: How to fix credit score? Also why is it so l Date: 8/15/2003 9:13 AM
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Snowballing the debt means when you've paid off a card, you apply that payment to the next card, and so on, and so on. By the time you reach the last debt, you're throwing a pretty big chunk of change at it each pay period.

Example:

Mastercard 1000 bal 100/mo pymt
Visa 2000 bal 180/mo pymt
Car loan 5000 bal 285/mo pymt

After paying off the mastercard, you continue to pay the 100/mo, but now you're adding it to the Visa payment. After that, you'd end up paying an extra 280/mo toward a car payment (nearly double payments- all that extra goes toward principal- very Foolish). This is a great way to quickly get out of debt. It take some discipline and isn't easy, but well worth it.

Good luck!
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