Snowball

RECENT NEWS
TechCrunch  Oct 8  Comment 
 A new mobile application called Snowball, launching today, is going to give iPhone users Android envy. The app serves as a universal inbox for your many mobile messaging clients, including Facebook Messenger, WhatsApp, SMS, Snapchat, Google...
The DIV-Net  Aug 21  Comment 
Although not a new concept, I like to think of my dividend growth stock portfolio as a snowball. If you can imagine standing at the top of a really steep hill, building your snowball from scratch starts with getting your hands on some snow. And...
BBC News  Jun 27  Comment 
Two Scottish confectionery firms are set to receive a windfall tax rebate after judges rule Snowball snacks are technically cakes.
The Hindu Business Line  Apr 22  Comment 
Some statements were vitriolic enough to elicit a cautionary note from Modi
USAToday.com  Apr 8  Comment 
Scratching your head on what sparked the recent stock selloff? Here are four theories.
Insurance Journal  Mar 7  Comment 
David J. Snowball has been named the new director for the Utah Insurance Department’s captive division. Snowball replaces Ross Elliott, who is set to retire at the end of the month. Snowball joined the division in July 2010. Before that … The...
The Australian  Feb 19  Comment 
SUNCORP chief Patrick Snowball has effectively closed the door on offloading its bank or troubled life insurance arm.
SeekingAlpha  Jan 23  Comment 
By David Van Knapp: Background I like to open each year on Seeking Alpha with a report on my public demonstration Dividend Growth Portfolio [DGP]. I keep it out in the open so that people can see how one person (me) executes a dividend growth...
The Hindu Business Line  Dec 18  Comment 
Cyber crime, if left unchecked could snowball into cyber terrorism and paralyse the country, cautioned Amaresh Pujari, Inspector General – Intelligence, Tamil Nadu. Speaking at a conferen...
BBC News  Sep 16  Comment 
Online shopping revolutionised the way consumers purchased goods, from tomatoes to televisions. Michael Aldrich the inventor of Videotex Online Shopping tells the BBC about his eureka moment in Robert Peston Goes shopping.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

Snowball

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]

References

  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