There are many ways you can reduce your debt load. One of them being the snowball approach.

The idea behind this approach is to reduce the number of debts you hold. Thereby simplifying how many you need to pay. This differs from the approach I wrote about in the article Save on Interest and Pay Down Debt Faster which I highly recommend reading.

The snowball approach works like this:

  1. First you write down and list each debt and mortgage you have.
  2. Then you sort it by smallest amount first (ascending order).
  3. Focus on paying off first (smallest) debt.

The end goal should ideally be that you have less people or firms that you owe money to. With fewer to pay, the easier it should become to get an overview of who you owe.

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