Debt snowball

Paying off debts from the smallest balance to the largest, for quick wins.

With the snowball method, you pay the minimum on every debt and put any extra money toward the smallest balance. When it's gone, that payment rolls onto the next smallest, so the amount you're paying grows like a snowball.

It usually costs more interest than the avalanche method, but clearing a debt early can keep you motivated. For many people, the method they'll stick with matters more than the math.

Try it with your own numbers in our debt payoff calculator.