Debt Snowball Method
Pay the smallest balance first to build unstoppable momentum.
How it works
The debt snowball method ignores interest rates entirely and targets your smallest balance first. You make the minimum payment on every debt, then throw every spare dollar at the smallest one until it is gone.
When that debt is cleared, its payment "rolls" into the next-smallest balance — so the amount you attack with grows like a snowball rolling downhill. Each payoff is a fast, visible win.
It is the most behaviorally effective method for most people: the early wins create motivation and proof that the plan works, which is often what keeps people going.
Pros and cons
Pros
- Quick, motivating wins early
- Simplifies your finances fast (fewer bills)
- Easiest plan to stick with long-term
Cons
- Usually costs slightly more interest than Avalanche
- Ignores high-rate debt that may be growing faster
Who it's best for
The Debt Snowball is best for people who are motivated by visible progress and have struggled to stay consistent with debt payoff before.
The only way to know if this is the fastest, cheapest plan for your debts is to run the numbers. The calculator compares this method against five others on your actual balances and rates.
Compare other methods
Debt Avalanche
Pay the highest interest rate first to pay the least total interest.
Smart Cascade
Free up cash flow fastest by blending payoff speed with interest.
Cash Flow Index
Clear the debts that tie up the most cash per dollar owed.
Highest Payment
Eliminate your biggest required payment first for instant relief.
Interest Cost
Stop the biggest dollar leak first (balance × APR).