Debt Snowball Method

Getting out of debt can feel like trying to dig your way out of a sandpit—every time you make a little progress, something pulls you back down. That’s exactly why so many people turn to the debt snowball method. It’s simple, powerful, and built to give you quick wins that keep you motivated.

In this guide, we’ll break down exactly how the debt snowball method works, how it compares to other strategies, and how to make it work faster. Whether you’re buried in credit card balances, personal loans, or medical bills, this method can help you take back control—one step at a time.

The debt snowball method is a debt repayment strategy where you pay off your debts from smallest to largest, regardless of interest rates. The idea is that by quickly knocking out smaller debts, you build momentum—just like a snowball rolling downhill.

Here’s the basic concept:

1. List all your debts from smallest balance to largest.
2. Make minimum payments on every debt.
3. Focus all extra money on your smallest debt until it’s paid off.
4. Once paid, roll that payment into the next smallest debt.
5. Repeat the process until all your debts are gone.

Let’s say you have the following debts:

• Make minimum payments on all debts.
• Put any extra cash toward Credit Card A (the smallest).
• When that’s paid off, take its $25 payment and add it to your Store Card payment.
• Now you’re paying $75/month toward the Store Card.
• Keep rolling those payments forward until everything is gone.

🎯 This method works best when you can add even a small extra amount—like $50/month—toward your smallest debt.

You may have heard of the debt avalanche method too. The avalanche prioritizes highest interest rate first, not the smallest balance.

While the avalanche saves more on interest in theory, the snowball keeps people emotionally engaged—which is often the biggest challenge in long-term debt payoff.

✅ Tip: Choose the method that keeps you going. The “best” strategy is the one you stick with.

The snowball method is especially helpful for:

• People who feel overwhelmed and need quick wins.
• Those who are motivated by visible progress, not just numbers.
• Anyone with several small debts that could be knocked out quickly.

It’s also ideal for beginners just starting their budgeting or debt-free journey.

You don’t need a huge income to make real progress. Here are a few practical ways to gain traction:

If you don’t already have a budget, it’s time to start. Use a simple spreadsheet or a beginner-friendly app like:

• You Need a Budget (YNAB)
• EveryDollar

This will help you find hidden money you didn’t realize you could use for debt.

Even earning an extra $200/month can help you accelerate payments. Some beginner ideas:

• Dog walking
• Freelancing
• Selling unused stuff online
• Driving for Uber or DoorDash

Try a 30-day no-spend challenge or cook at home more often. Funnel every extra dollar to your smallest debt.

Amazon has helpful tools you can grab on a budget:

>Debt payoff thermometers

>Cash envelope wallets for zero-based budgeting

>Budgeting planners and sticker sets

Let’s say you start with $200/month extra to throw at debt.

By using the snowball method, and staying consistent, you could:

• Pay off 2 small cards in 6 months
• Free up $100–150/month in minimums
• Be completely debt-free in 18–24 months (depending on your balances)

And the psychological boost from knocking out those first few balances? Huge. That’s often the key to staying motivated.

The debt snowball method isn’t about interest rates—it’s about progress you can see. If you’re the type of person who needs quick wins to stay motivated, this strategy could be the game-changer you’ve been looking for.

Stay consistent, celebrate every payoff, and don’t be afraid to start small. The snowball grows as you go—and with the right mindset and tools, you’ll be surprised how fast that momentum builds.

-Check out our post How to Get Out of Debt to learn about other payoff strategies and debt planning techniques.