What Is The Debt Snowball Method?

by Samara

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Are you drowning in debt? Do you have a hard time making ends meet on your monthly budget? You’re not alone. Today, many people are struggling to make minimum payments on their credit card bills and other debts. The good news is that there is hope! In this blog post, we’ll look at the debt snowball method and why it’s important to make any extra money go directly towards paying off one of your debts. It will also show how easy it can be to get out of debt with the right strategy.

What is the debt snowball method?

The debt snowball method focuses on paying down your smallest debts first before moving to larger debts.

I know it’s hard to hear that we need to reduce our debt. But the truth is, if you want a better future and your dream life, you need to be willing to put in some work. The debt snowball method is one of the most popular methods for reducing debt because by putting all of your money towards paying off debts with low balances first, the psychological “high” of a quick win keeps you motivated.

I’ve been there. You’re staring at your credit card statements and you don’t know where to start. How can you ever pay off these bills? It’s not looking good. But, if you keep using the snowball method to reduce your debt, it will get better!

I like the debt snowball because you can see progress and feel motivated by seeing your payments make an impact on reducing each of your debts every month. This is why it works. The debt snowball method can help you reduce your debt by helping you to make progress quickly and keep going. It is not a magic bullet, but it will help you get out of debt quicker than just paying the minimums on your credit card bills.

You’ll need a plan that helps you manage your finances well enough so that they’re manageable for the long-term as well, but in order to really get started, I recommend starting with the following:

List your debts in order of the smallest balance to the largest

Many people don’t know where to start when it comes to figuring out what their debts are, and which ones they should pay off first. You may be wondering “shouldn’t I start with the debt that has the highest interest rate?” Of course, but the idea of the debt snowball method is to start with the smallest debt for quick wins which will keep you motivated throughout this process.

It can be hard to know where to start when it comes to paying off debt, but this might help. Paying off the smallest balances first will make the process less daunting and more achievable.

Make minimum payments on all but one debt, and put any extra money towards that one debt until it’s paid off

Focus on paying the minimum payment for all of your debt except for the smallest one. If you happen to have any extra cash remaining in your budget, throw it towards the smallest debt too. It’s important to get that one paid off as soon as possible, so that money can be rolled over to the next largest debt.

Repeat with each remaining debt

This one is self-explanatory. Each time you pay off a debt, the money that you used to pay the previous debt. Add it to your minimum payment for the next one until you’re done! This is why it’s called the snowball method; your payments should get larger as you near the end of your debt payoff. Before you know it, what looked like it was impossible, now suddenly feels more manageable.

Make a budget and stick to it

A good way to pay down debt and start saving money is by making a budget. This gives you a plan for what you’re going to spend. It gives you an idea of how much money should be left at the end of the month. It also gives you the opportunity to throw any extra cash towards your debt.


This method is popular because it works and the debt snowball method is a great way to pay off debts. It’s also helpful if you need motivation and accountability. Paying off one account as soon as possible can give you more confidence in tackling the next debt.

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