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Math of Money

Debt snowball

A debt payoff method that targets the smallest balance first regardless of rate, trading some extra interest for faster early wins.

You pay minimums on everything and throw extra money at the smallest balance. Each payoff frees up its payment to roll into the next-smallest debt, so the amount you're paying toward debt grows like a snowball.

The snowball usually costs more interest than the debt avalanche, but the difference is often small when rates are similar, and closing accounts quickly helps many people stay on plan.

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Disclaimer: Definitions are general education, not financial, tax, or legal advice. Figures are for the 2026 tax year unless noted.