What is the debt snowball method?

You make the minimum payment on every debt, then put any extra money on the smallest balance first. When it is paid off, you roll its whole payment onto the next smallest, and so on. The payments snowball and clear your debts faster and faster.

Is snowball better than avalanche?

The avalanche method targets the highest interest rate first, so it usually saves a little more interest. The snowball targets the smallest balance first, giving quick wins that keep you motivated. The best method is the one you will stick to.

How do I become debt free faster?

Add as much extra as you can to the smallest debt, avoid taking on new debt, and keep the total payment the same even as debts clear. The freed up payments accelerate the remaining balances, which is the power of the snowball.

Debt Snowball Calculator

Plan the fastest way out of debt. Enter each debt with its balance, interest rate, and minimum payment, then add any extra you can pay each month. The calculator pays the smallest balance first, rolls each cleared payment onto the next, and shows the payoff order, the time to be debt free, and the total interest.

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Extra payment per month

until debt free

Total interest$0

Total paid$0

How the snowball works

Every debt keeps getting its minimum payment so it stays in good standing. Your extra payment goes entirely on the smallest balance. Once that debt is gone, its whole payment, the minimum plus the extra, rolls onto the next smallest. Each payoff makes the next one faster, so the snowball grows.

Tips

Keep your total monthly payment the same even as debts clear.
Stop adding new debt while you pay down the old.
If staying motivated is the challenge, smallest first works well. If saving interest matters most, target the highest rate.

Related calculators

Debt Consolidation Calculator: combine debts into one.
Credit Card Interest Calculator: payoff time on a card.
Budget Calculator: free up money to pay debt.
Loan Calculator: loan repayments.
Credit Card Minimum Payment Trap: the true cost of paying only the minimum.

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