Debt Snowball Method

The Debt Snowball Method is a strategy for paying off debt that focuses on tackling the smallest debts first. You list all your debts from smallest to largest, regardless of interest rate. After making minimum payments on all debts, you direct any extra money toward the smallest debt until it’s paid off. Then, you move to the next smallest debt, adding what you were paying on the first one, creating a "snowball" effect as you eliminate debts. This method builds motivation and momentum, helping individuals stay committed to becoming debt-free.