The Debt Snowball Method

The debt snowball method is a straightforward and motivational approach to paying off debt. Rather than focusing on interest rates, it emphasizes behavioral wins by building momentum through small victories. This method works particularly well for people who feel overwhelmed by multiple debts and need a structured, encouraging way to stay on track.

To get started, create a list of all your debts, excluding your mortgage for now. This includes credit cards, personal loans, car loans, student loans, and any other outstanding balances. Once your list is complete, order your debts from the smallest total balance to the largest. Don’t worry about interest rates at this stage—the focus is on balance size.

Next, continue making the minimum monthly payments on all your debts—except for the smallest one. Direct every extra dollar you can toward that smallest debt. This may require trimming your spending, earning extra income, or redirecting money from other parts of your budget. The goal is to eliminate that first balance as quickly as possible.

Once the smallest debt is paid off, take the full amount you were paying toward it and apply it to the next-smallest debt, on top of its minimum payment. This larger payment helps you eliminate the next debt faster. Each time you pay off a debt, your available payment amount grows, creating a snowball effect that builds speed and power with each balance you knock out.

After all non-mortgage debts are paid off, the snowball doesn’t stop. Now, you redirect the full force of those combined payments toward your mortgage. By continuing the snowball and aggressively paying down your home loan, you can shave years off your mortgage term and save thousands in interest. What began as a way to eliminate small debts becomes a long-term plan for full financial freedom—including owning your home outright sooner than expected.

This method works not only because of its structure but because of the psychology behind it. Paying off even a small debt provides an emotional lift and a sense of progress. That momentum fuels your motivation and strengthens your financial habits. As you watch each balance disappear, your confidence grows, and staying committed becomes easier.

The debt snowball method is about more than just numbers—it's a mindset shift. With consistency and determination, you can roll your way through every debt, all the way to a paid-off home and a debt-free life.

The information provided in this blog post is intended for general informational purposes only and should not be construed as legal or tax advice. While every effort has been made to ensure the accuracy of the information, tax laws and regulations are subject to change, and individual circumstances may vary. For personalized advice and to ensure compliance with current tax laws, it is strongly recommended that you consult with a qualified tax professional, financial advisor, or legal counsel. The author and publisher of this blog assume no responsibility for any errors or omissions, or for any actions taken based on the information contained herein.