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Posted by Dina-Marie Oswald on

Do find yourself in debt but wanting to be free of it? Do you feel as though you are drowning and just can’t get ahead? The Debt Snowball sheet will give you a plan for financial freedom. You can find the rest of the Daily Life Planner free printables here.

When I am in the car, I love listening to Dave Ramsey. The Debt Snowball page is based on his 7 Baby Steps to financial freedom. They are:

  1. Save $1000 Emergency Fund
  2. Pay off debt
  3. Fully funded emergency fund of 3 – 6 months living expenses
  4. Invest 15% of income
  5. College Fund
  6. Pay off Home
  7. Give

Here is a brief explanation of the Debt Snowball and you can read more in How The Debt Snowball Works. If you think of making a snowball, it is a lot faster to pack snow and begin rolling it to gather more momentum and snow quickly. You make a lot of progress in a short period of time.


The analogy of rolling a snowball applies to your debt also. By paying the smaller debts first, more money is freed to put toward larger debts.

  1. List all your debts from smallest to largest by the amount owed – don’t worry about interest rates.
  2. Pay the minimum payments on all but the smallest debt on the list.
  3. Attack the smallest debt on the debt snowball with everything you have until it is paid off. Sell what you can, take an extra job or two, cut your budget to the bare necessities.
  4. As the smallest debt is paid off, mark it off and attack the next debt on the list. You will now have the money you were putting toward the smallest debt plus the minimum payment you were making on the next debt and any extra money you can find to pay on the next debt on the list.

As each debt is paid off, take the money you were paying toward that debt, plus any extra you can find, and put toward the next debt on the debt snowball list. This way you knock them out one by one!

The purpose of the debt snowball is behavior modification. If you began attacking the largest debt first, you would see the amount diminish but that is all. You would lose steam and stop being so intense and still have the debt hanging around. Once you begin crossing off the smaller debts because you have paid them, momentum builds and you are on fire to get of debt!


Please do not alter or sell the Daily Life Planner free printables pages without my personal written consent. They are intended for personal use only and not for resale.