Crush Your Debt With The Snowball Method
Debt can feel overwhelming—like a weight that never quite lifts. But what if there was a simple, motivating way to pay it down faster? That’s where the debt snowball method comes in.
Made popular by financial experts like Dave Ramsey, the snowball method helps you tackle your debt with momentum and focus, one bill at a time. In this post, we’ll break down exactly how it works and how you can start using it today to become debt-free.
What Is the Debt Snowball Method?
The debt snowball method is a debt repayment strategy where you:
List all your debts from smallest to largest (regardless of interest rate).
Pay the minimum on every debt—except the smallest one.
Put any extra money you can toward the smallest debt until it’s gone.
Once the smallest is paid off, roll its payment into the next smallest debt—and so on.
Like a snowball rolling downhill, your payments grow larger and faster with each debt you eliminate.
Why It Works: The Psychology of Progress
Financially, the debt avalanche method (paying off the highest-interest debt first) might save you more in the long run. But here’s the deal:
The snowball method works because it keeps you motivated.
Each time you pay off a debt, you get a quick win. That sense of progress builds confidence and momentum. It’s less about math and more about mindset—and that’s a powerful thing when you're trying to change financial habits.
Step-by-Step: How to Use the Debt Snowball Method
1. List Your Debts
Write down all your debts (credit cards, personal loans, medical bills, etc.). Organize them from smallest balance to largest.
Example:
Credit Card A: $500
Medical Bill: $1,200
Personal Loan: $3,500
Credit Card B: $6,000
Note: Ignore the interest rates for now.
2. Make Minimum Payments on All But the Smallest
Each month, continue making minimum payments on all debts to avoid late fees or penalties.
Then, take any extra money you can find in your budget—$50, $100, or more—and put it toward the smallest debt.
3. Eliminate the Smallest Debt First
Once that smallest debt is paid off, celebrate—then immediately take the full amount you were paying on that debt and apply it to the next smallest one.
Example:
You were paying $50 extra on Credit Card A.
Now add that $50 to the minimum payment for the Medical Bill.
You’re now making faster progress on a larger debt without adjusting your budget.
4. Repeat the Process Until You’re Debt-Free
Keep the momentum going. Each time you pay off a debt, your snowball (total payment amount) grows. Eventually, that large payment knocks out your biggest debt.
Pro Tip: Find Extra Money for Your Snowball
To grow your snowball faster, look for ways to free up cash:
Cancel unused subscriptions
Sell things you don’t use
Cut back on dining out
Take on a short-term side hustle
Every dollar you throw at your debt speeds up your journey to financial freedom.
Final Thoughts
The debt snowball method isn’t just about numbers—it’s about motivation, momentum, and mindset. It gives you a clear path forward and builds confidence with every win.
So if your debt feels out of control, start small. Pay off that first balance. Watch your progress grow. And soon, you’ll look back and realize—you’ve done it. You’re debt-free.
Start today. Build your snowball. Change your future.
