Everybody these days are looking for a simple solution to getting out of debt.  Some have considered credit counseling, debt negotiation, and even bankruptcy.  However the problem with each of these programs is that they can be very costly to you and your credit.  So in this article I’m going to cover an option that is very inexpensive and easy to implement, the debt snowball plan.

To get started with your debt elimination plan collect all of your debts and put them in order from lowest to highest.  For example maybe you have 3 credit cards, a car loan, and a mortgage.  If your credit cards have a balance of $300, $500, and $900, and your car loan still has a debt of $10,000, and your mortgage had a debt of $100,000 you would list them in this order because this is the order you will pay them off in.

Next pay only the minimum payment towards each debt except the debt with the lowest balance.  With this debt you will pay the minimum payment plus any extra money you have, I suggest at least a $100 or more.  Do this each month until you have the first debt paid off.

Once the first debt is paid off move onto the second debt by paying all available extra cash including the money you were once paying to the first debt.  Keep repeating this process over and over until you have each debt paid off in full.

Finally, the last debt you will should have to pay off is your mortgage.  Apply all extra money towards this debt until you have it completely paid off.

In the end a do it yourself debt settlement plan can work wonders paying off your debt.  However while you are running this plan you will have to discontinue adding any new debt such as using credit cards or taking on any new personal loans for this plan to work properly.