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Glossary Finance

Debt snowball

The debt snowball is a payoff strategy that puts extra money on the smallest balance first, for quick wins, then rolls each freed-up payment onto the next.

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In more detail

It usually costs a little more interest than the Debt avalanche; in the guide's example, $420.59 more. Many people stick with it better because the early progress is visible.

Try these tools

Debt Payoff Calculator

Simulate paying off multiple debts at once with the snowball (smallest balance first) or avalanche (highest interest first) strategy.

See also

  • Glossary Debt avalanche
    The debt avalanche is a payoff strategy that puts all extra money on the debt with the highest interest rate first.
  • Guide How Debt Payoff Strategies Work
    Avalanche versus snowball on one worked example with real totals, why minimum payments take so long.
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