Enter Your Debts
What Is the Debt Snowball Method?
The debt snowball method is a proven, motivating way to pay off multiple debts by focusing on the smallest balances first. By paying off one debt quickly, you gain momentum—like a snowball rolling downhill—and build confidence as you go.
Here’s how it works: You make minimum payments on all debts except the one with the smallest balance. Put any extra money toward that smallest debt until it’s gone. Then, roll the amount you were paying into the next smallest, and so on.
Example:
- Debt 1: $500 @ 18% APR – minimum $25/month
- Debt 2: $2,000 @ 22% APR – minimum $50/month
- Debt 3: $4,000 @ 16% APR – minimum $100/month
Using the snowball method, you’d tackle Debt 1 first with as much extra as you can afford. Once paid off, you’d apply that amount to Debt 2 while still paying Debt 3’s minimum, and so on.
Tip:
In our calculator, the “Min Payment ($)” field is also where you can enter your intended monthly payment. If you’re able to pay more than the minimum, just enter that higher number! You’ll see faster payoff and lower interest in your results.