Debt Snowball

A payoff strategy that targets the smallest debt first, regardless of interest rate, for quick psychological wins.

The debt snowball method pays off the smallest balance first, regardless of its interest rate, then rolls that payment into the next-smallest debt once it's gone. It usually costs more in total interest than other methods, but the quick wins of eliminating whole debts one at a time keep many people motivated to stick with the plan.

The debt snowball had her clear her tiny store card balance in a month, a fast win that kept her motivated for the bigger debts ahead.