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Debt snowball
Paying off your smallest balance first for quick wins and momentum.
Example. The snowball method clears a small 5,000 balance first, then rolls that payment into the next debt.
The debt snowball means clearing your smallest balance first, then rolling that freed-up payment into the next smallest, and so on. It costs a little more in interest than the avalanche, but the early wins keep you motivated to finish.
Questions people ask
What is the debt snowball method?
You clear your smallest balance first, then roll that freed-up payment into the next smallest, and so on. The early wins keep you motivated.
Does the snowball cost more than the avalanche?
Slightly, because you are not targeting the highest interest first. But the momentum from quick wins helps many people actually finish paying off debt.
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