How the debt snowball works
- List every debt and pay the minimum on all of them.
- Throw every extra dollar at the smallest balance until it's gone.
- Roll that freed-up payment onto the next-smallest — the "snowball" grows.
Snowball vs. avalanche: avalanche (highest rate first) saves the most interest, but snowball's quick early wins keep more people going. Use whichever you'll actually stick with.
FAQ
Is the snowball method the cheapest?
Not always — the avalanche method usually costs slightly less interest. Snowball wins on motivation. Our comparison tool shows the exact difference for your debts.