The snowball method pays off your smallest debts first, giving you quick wins that build momentum and keep you motivated until every debt is gone.
How it works: sort your debts by balance, smallest first. Pay minimums on everything. Apply every extra dollar to the smallest debt. When it's gone, roll that payment to the next smallest.
Why it works for most people: each eliminated debt is a psychological win. Research shows that early victories make it significantly more likely you'll stay the course and reach debt freedom.
Snowball advantage
Strategy
Strategy comparison
| ❄ Snowball | 📉 Avalanche | |
|---|---|---|
| Payoff date | May 2030 | May 2030 |
| Total interest | $3,979 | $3,979 |
| Months to payoff | 47 | 47 |
| You save | $0 | — |
Balance over time
Payment schedule
| Month | Debt | Payment | Principal | Interest | Remaining |
|---|---|---|---|---|---|
| Mo 1 | Chase Visa | $335 | $232 | $103 | $5,168 |
| Car Loan | $185 | $138 | $47 | $8,062 | |
| Student Loan | $130 | $75 | $55 | $11,925 | |
| Mo 2 | Chase Visa | $335 | $236 | $99 | $4,932 |
| Car Loan | $185 | $139 | $46 | $7,924 | |
| Student Loan | $130 | $75 | $55 | $11,850 | |
| Mo 3 | Chase Visa | $335 | $241 | $94 | $4,692 |
| Car Loan | $185 | $139 | $46 | $7,784 | |
| Student Loan | $130 | $76 | $54 | $11,774 | |
| Mo 4 | Chase Visa | $335 | $245 | $90 | $4,447 |
| Car Loan | $185 | $140 | $45 | $7,644 | |
| Student Loan | $130 | $76 | $54 | $11,698 | |
| Mo 5 | Chase Visa | $335 | $250 | $85 | $4,197 |
| Car Loan | $185 | $141 | $44 | $7,503 | |
| Student Loan | $130 | $76 | $54 | $11,622 | |
| Mo 6 | Chase Visa | $335 | $255 | $80 | $3,942 |
| Car Loan | $185 | $142 | $43 | $7,361 | |
| Student Loan | $130 | $77 | $53 | $11,545 | |
| Mo 7 | Chase Visa | $335 | $259 | $76 | $3,683 |
| Car Loan | $185 | $143 | $42 | $7,218 | |
| Student Loan | $130 | $77 | $53 | $11,468 | |
| Mo 8 | Chase Visa | $335 | $264 | $71 | $3,419 |
| Car Loan | $185 | $143 | $42 | $7,075 | |
| Student Loan | $130 | $77 | $53 | $11,390 | |
| Mo 9 | Chase Visa | $335 | $270 | $65 | $3,149 |
| Car Loan | $185 | $144 | $41 | $6,930 | |
| Student Loan | $130 | $78 | $52 | $11,312 | |
| Mo 10 | Chase Visa | $335 | $275 | $60 | $2,874 |
| Car Loan | $185 | $145 | $40 | $6,785 | |
| Student Loan | $130 | $78 | $52 | $11,234 | |
| Mo 11 | Chase Visa | $335 | $280 | $55 | $2,594 |
| Car Loan | $185 | $146 | $39 | $6,639 | |
| Student Loan | $130 | $79 | $51 | $11,156 | |
| Mo 12 | Chase Visa | $335 | $285 | $50 | $2,309 |
| Car Loan | $185 | $147 | $38 | $6,492 | |
| Student Loan | $130 | $79 | $51 | $11,077 |
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FAQ