By snowballing your debt payments, you can get out of debt significantly faster and save a lot of money in interest, without increasing your monthly payments toward your debt.
Here’s how it works. Assume you have three debts, and you’re paying $100, $400 and $1000 each month on those debts, a total of $1500 per month. When your first debt with a minimum payment of $100 is paid in full, you will then begin to apply that extra $100 per month to the $400 as an extra payment towards the second debt. When the second debt is paid in full, you take the entire amount of $500 you were paying and apply it to the $1000 as an extra payment towards debt number three.