What is the debt snowball method?

The debt snowball method pays off debts from smallest to largest balance. You pay minimums on all debts and put any extra toward the smallest balance first. When that's paid off, you roll that payment to the next smallest. The psychological wins of paying off small debts first can motivate you to continue.

Is snowball better than avalanche?

Avalanche (paying highest APR first) typically saves more money in interest. Snowball often gets debts paid off faster psychologically and can work better if you need motivation. Our calculator shows both so you can compare.

What if I can't afford the minimum payments?

If your monthly budget is less than the sum of all minimum payments, you may need to contact creditors for hardship programs, consider debt consolidation, or seek credit counseling.

PayoffKit

Debt Snowball Calculator

Pay off debts from smallest to largest balance. Enter each debt and your monthly budget. See payoff order and total interest.

Monthly Budget ($)

Debts

Snowball (smallest first)

Payoff order: Card A → Card B

Total interest: $1,500.90

Months: 22

Avalanche (highest APR first)

Payoff order: Card B → Card A

Total interest: $1,394.35

Months: 22

How It Works

The debt snowball method: pay minimums on all debts, then put any extra toward the smallest balance first. When that debt is paid off, roll that payment to the next smallest.

This creates quick wins that motivate many people. It may not save the most interest compared to avalanche (highest APR first), but the psychological boost helps some stick with it.

Examples

Two credit cards

Two cards: $2k and $5k. $400/month budget. Snowball pays Card A first.

Card A: $2,000 @ 18% • Card B: $5,000 @ 22% • $400/mo

Three debts mix

Medical, card, and loan. Snowball targets smallest first.

Medical: $800 @ 0% • Credit Card: $3,500 @ 19% • Personal Loan: $10,000 @ 12% • $500/mo

Compare with our Debt Avalanche Calculator to see which saves more interest.

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Frequently Asked Questions

What is the debt snowball method?: The debt snowball method pays off debts from smallest to largest balance. You pay minimums on all debts and put any extra toward the smallest balance first. When that's paid off, you roll that payment to the next smallest. The psychological wins of paying off small debts first can motivate you to continue.
Is snowball better than avalanche?: Avalanche (paying highest APR first) typically saves more money in interest. Snowball often gets debts paid off faster psychologically and can work better if you need motivation. Our calculator shows both so you can compare.
What if I can't afford the minimum payments?: If your monthly budget is less than the sum of all minimum payments, you may need to contact creditors for hardship programs, consider debt consolidation, or seek credit counseling.

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