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Become Debt Free In 4-9 Years
Snowman Principle

Draw yourself a snowman on a piece of paper. You might use the back of the debt worksheet. Now if you have five debts to pay off, Make your snowman five "balls" high. Make the top smaller than the bottom. If you have ten debts, you will have a tall snowman.

OK, let's give you an example of how this works.

Debt # 1 Visa card Balance 500.00 Payment 25.00

Debt # 2 Master card Balance 800.00 Payment 40.00

Debt # 3 Furniture Balance 1250.00 Payment 65.00

Debt # 4 Car Payment Balance 3800.00 Payment 250.00

Debt # 5 Car Payment Balance 4200.00 Payment 250.00

Debt # 6 House Payment Balance 95,000.00 Payment 900.00

Total debt is $105,550.00

If you pay this debt off in the conventional way, of the minimum payment, you will not be debt free for thirty years. (Assuming you have a thirty year morgage).

So our snowman will have six round balls. Ok let's talk about how to melt our snowman.

We have all heard the saying, "Too much month at the end of the money." If you do not pay any more than the normal minimum payment on your debts, you will never get out.

Be sure and read the page about "Myths" so you can understand this principle.

In 1990, the U.S. Department of Health and Human Services did a study (Published in June 1990, publication #1311871) and concluded that 96% of Americans do not reach financial independence by age 65. So if you want to join that crowd, just keep doing it the way you have been doing it.

So we have to find extra money to help pay off our debts. Since we are using the "snowman", let's call it your "rock salt" money to melt away that snowman debt.

In order to find this money, you need to put on your thinking cap and find out where you can cut costs, without changing your lifestyle significantly.

If you can find $150.00 to $200.00 extra per month, your debt can be paid off rather quickly. That might sound like a lot of money to you right now, since you are having trouble making ends meet every month. But this page will help you with some ideas on how to do that.

Principle of Rock Salt

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