Do you know the method that helps you pay off your debts? We explain it to you

We are all clear that we should always cherish acceptable and close goals before launching big, right? Thus, before ascending to an ochomil we must tan with mountains of five thousand meters, because only in this way we will adapt to the hardships of an ascension of this caliber. Surely there is unanimity about this among the readers of our online loan comparator.

But then why do you insist on paying off debts with higher interest rates?

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The truth is that we should never start with the fattest, but with the lightest.

Not surprisingly, if you opt for this strategy, you will only be able to demotivate yourself and, of course, you will quickly cease in your efforts since the failure will be capitalized. Luckily, we will give you the necessary guidelines to know how to deal effectively with your debts and where to direct all your savings efforts so that you can settle them without major problems.

Specifically, we are going to inform you about the Harvard method, also called Snowball, which consists in prioritizing debts with smaller balances , instead of focusing on those that have higher interest rates.

You will see how your application seems very simple and full of small satisfactions at every step.

What is the Harvard method that will help you settle your debts?

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This method was put into practice among a group of people and was soon revealed as a very motivating tool. In fact, the experiment brought together several participants who had to pretend that they had paid their debts virtually.

After analyzing the situation, it was concluded that the most decisive thing was not the amount pending payment, but the amount that had been settled. It did not matter that this debt was not too large, only having achieved this goal, however small.

Of course, the method has stopped being an experiment and they have already tried it in their ‘financial meats’ different people and all of them assure that it works.

Without going any further, we have the example of the well-known blogger – at least in the Anglo-Saxon world – Derek Sall. He dedicates his blog to the world of personal finance and after applying the Snowball system in his life he boasts of having reduced the value of his debt by $ 100,000, including his mortgage. What do you think? Do you find it convincing?

The truth is that nothing happens to try your luck with this method that promises to save us from a sea of ​​debts or, at least, lead us to a small island so we can breathe for a while.

In our comparator of online loans and financial accounts we are going to reveal the guidelines to incorporate the mentioned method into our lives. Prepared?

Guidelines to apply the Snowball method with which you will be able to pay part of your debts

Guidelines to apply the Snowball method with which you will be able to pay part of your debts

This system is very popular in the USA. and it has been used since 2012. Therefore, it has enough filming for us to take its conclusions very seriously.


  • First of all we must write down all our credits. Specifically, we need to get the outstanding debt, the number of outstanding terms, as well as the monthly fee we pay for it. After detailing these aspects we have to order the loans. For this we will rely on the dates of the deadlines. Do not forget that the order is from lower to longer term.
  • Then we need to determine what our economic capacity is; that is, our monthly income, our fixed and variable expenses.
  • After this we must find out how much money we can allocate to pending payments.
  • Now define your goal. That is, the loan you set for your goal. Of course, choose an acceptable one that is not too ambitious. We advise you to start with the shortest pending ones.

In conclusion, all our saving effort must be aimed at paying a single debt. Do not diversify. You will see how soon the results of all your sacrifices are noticed. In addition, you will receive small satisfactions along the way with the payment of those debts that, although small, it is a great relief to get rid of them, right?

And don’t forget that you can also use your weapons of persuasion. That is, negotiate interest rates with your creditors. Do not think that you will always find the doors closed, as many will be willing to always access with that increase their payment possibilities. In addition, if the relationship has been cordial and there have been no big disagreements, surely you do not find great obstacles to this negotiation.

In short, we encourage you to apply this ‘snowball’ system in your finances, because, as they say, you don’t lose anything. Quite the contrary, you have a lot to gain since it can be used to settle a portion of your debt. Something you surely dream about every day.

An online loan to help you meet timely payments

Of course, we understand that you are not always in the best position to pay your debts and that you need a little push. In this sense, surely you appreciate the existence of online loans; A simple, transparent and quick tool to get money for these emergency situations.

For this, we recommend that you consult our offers and the financial ones that work with us in order to compare their conditions and find the one that best suits your needs. Not surprisingly, we understand that each person is different and their economic situations, therefore, differ.

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