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Ok, I use a method somewhat similar to the above video, but it's quicker and easier.
First and most importantly, don't pull hard on the snags! As soon as you feel the resistance of the snag, stop and use your thumb to simply spin the spool (winding the line just as turning the reel does) a time or two. Now, take the thumb that's already sitting on the spool and firmly slide your thumb left to right and back again. After a time or two back and forth with your thumb, then try to spool the line off again.
Each time you hit a snag while peeling line off, just give the drum a couple of turns back with your thumb, then do the left/right/left/right with your thumb, then try peeling line agin.
Again, the most important part is not binding the line tighter by pulling on the sangs too hard. Also, when you slide your thumb back and forth, you should feel some wraps moving while others stay put and your thumb slides over them.
This method has worked flawlessly for me, and I never cut, pick, or respool.
That is the way I usually do, but sometimes the loop is to small and you can't back it out so I use the pick on my trusty nail clippers.
