Financial Times  Jun 9  Comment 
Increasing concentration of assets in megafunds leads to warning about volatility
MedPage Today  Sep 8  Comment 
(MedPage Today) -- Largest price increase in at least a decade, AARP study finds
Forbes  Feb 7  Comment 
While excitable experts scramble to raise predictions that the electric car shakeup is nigh, the truth on the ground suggests the revolution is struggling for oxygen. British newsletter Automotive Industry Data said Western Europe’s sales of...
TechCrunch  Nov 30  Comment 
 Amazon’s popular Snowball storage container got a major update today at the company’s re:invent conference. Though largely overshadowed by the new batshit crazy AWS Snowmobile, the aforementioned Snowball will be getting a storage increase...
SeekingAlpha  Oct 3  Comment 
Euromoney  Mar 31  Comment 
The emergence of new trading venues marks a notable advance in the development of cryptocurrencies, such as Bitcoin, although exchanges vary in their product offerings.
TechCrunch  Dec 30  Comment 
 Credit and finance management platform Credit Karma, known best as the startup that offers free, no-strings-attached credit scores, has made its first acquisition. The company has acquired the makers of the mobile application Snowball, with...



The Snowball strategy of debt reduction is used when paying off more than one liability simultaneously. Extra payments are made on one liability first, while paying steadily above the minimums on the remaining debts. [1] This works for households with variable cash flow income as well as fixed income streams. Liabilities can be investment accounts as well as loans, anything that sucks up cash. [2] [3] [4]

The main payment, increases in size as it rolls over each successive liability, essentially snowballing debt payments. The borrower focuses on paying off one debt faster than the others, so that there is a greater momentum to pay off the remaining debts. No payments can be missed on any accounts. In theory, by the time the last debts are reached, the extra cash flow previously paid toward the earlier liability’s, will grow quicker, like snowballs rolling downhill gathering more snow and momentum.

Payments can be made in an amount greater than the minimum amount on all of the debts, but the majority of the debt repayments are funneled to pay off one liability at a time as quickly as possible. As each debt is killed off, cash flow is moved on to the next, with the same aggressive accelerated repayment plan used on the first.

The effect on each liability is increased by the cash flow diverted from the previously mortified debts. One benefit of snowballing the smallest-balance first is the psychological feeling of getting to freedom. [5] A benefit of snowballing the highest rate of interest first, is reduced interest costs, and a quicker amortization of the principle. [6] The benefit of first “snowballing,” the liability that bears most on your mind, priceless.

Snowball 1400s, from snow + ball the image of a snowball increasing in size as it rolls along had been used since at least 1613, to throw snowballs at 1850, to make snowballs 1680s, Snowball's chance (in hell) is recorded by 1910. [7] to increase rapidly 1929 [8]


  1. [1]
  2. [2]
  3. Save by borrowing technique
  4. [3]
  5. [4]
  6. [5]
  7. [6]
  8. [7]
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki