Struggling with multiple debts? The Snowball Method is a simple, proven strategy to help you gain momentum and pay off debt faster — one step at a time.
It works by focusing on your smallest debts first, giving you quick wins that motivate you to keep going.
Let’s break it down step-by-step.
🔁 What Is the Snowball Method?
The Snowball Method is a debt repayment strategy where you:
- List all your debts from smallest to largest (ignore interest rates for now).
- Pay the minimum payments on all debts.
- Put all extra money toward the smallest debt until it’s paid off.
- Then, roll that payment into the next smallest debt — like a snowball growing bigger.
🧊 Why It Works
✔️ Quick Wins: Paying off small debts fast gives you motivation.
✔️ Clear Focus: You always know which debt to attack next.
✔️ Momentum: Each debt you pay off increases your confidence and frees up more money.
💡 Step-by-Step Snowball Method
1️⃣ List Your Debts Smallest to Largest
Example:
| Debt Name | Balance | Monthly Minimum |
|---|---|---|
| Credit Card A | $400 | $25 |
| Store Loan | $900 | $40 |
| Personal Loan | $2,500 | $100 |
| Car Loan | $5,000 | $200 |
2️⃣ Make Minimum Payments on All
Pay the minimum on every debt except the smallest.
3️⃣ Attack the Smallest Debt First
Let’s say you have an extra $150/month.
- Pay $25 minimum + $150 extra = $175 toward Credit Card A.
- It will be paid off in just a few months!
4️⃣ Roll That Payment Into the Next Debt
Now that Credit Card A is gone, take that $175 and add it to the next debt (Store Loan).
- $40 (minimum) + $175 = $215 monthly
- You’ll pay it off even faster.
Repeat this process until all debts are gone.
🔄 Snowball vs Avalanche Method
| Method | Focus On… | Benefit |
|---|---|---|
| Snowball | Smallest balances | Motivation & momentum |
| Avalanche | Highest interest rates | Save more money in the long run |
Choose Snowball if you need motivation and want fast results.
Choose Avalanche if you want to pay less in total interest.
🔚 Final Thoughts
The Snowball Method is about psychological momentum.
By crushing your smallest debts first, you feel progress — and that keeps you going.
💬 “The journey to debt freedom starts with one small win.”
Stay consistent, track your progress, and celebrate each milestone.
You’ll be debt-free faster than you think!
