How the Debt Snowball Method Works

The Debt Snowball Method involves paying off your debts from smallest to largest balance, regardless of interest rate. You make minimum payments on all debts except the smallest one, which you attack with your extra payment amount. Once the smallest debt is paid off, you roll that payment amount into the next smallest debt, creating a "snowball" effect.

Benefits: Quick wins keep you motivated, simplifies budgeting, and creates momentum as each debt is eliminated.