A payoff strategy where you pay off debts from smallest balance to largest, regardless of interest rate.
With the snowball method, you make minimum payments on all debts except the smallest, which gets any extra available money until it's paid off. Once cleared, that payment amount rolls into the next-smallest debt. The appeal is psychological momentum from quick wins, even though it isn't always the mathematically fastest way to minimize total interest paid.
Not to be confused with: The debt avalanche method, which orders debts by interest rate instead of balance size.
The snowball method of paying debt relies on behavioral psychology to help you eliminate liabilities. Discover how to rank your debts, secure quick wins, and build unstoppable financial momentum.
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