Debt snowball method

The debt snowball is a way to order debt repayments by balance. You pay the minimum on every debt and send any money left over to the smallest balance. When it is cleared, you add its payment to the next smallest, so the payment grows as each debt goes. According to the US Consumer Financial Protection Bureau (CFPB), you see progress quickly as small debts disappear, but you may pay more in the long run because the most expensive debts wait.

The snowball suits people who need an early win to stick with a plan. It costs little extra when your smallest debt also has a high rate, or when all your rates are close.

Example: take three debts totalling £10,000: a £1,500 loan at 9.9% APR (minimum £50 a month), £3,000 on Card A at 24.9% (£75) and £5,500 on Card B at 19.9% (£140), with £450 a month to spend. The snowball clears the loan in month 7, Card A in month 18 and Card B in month 29, with £2,723.77 of interest. Paying the highest rate first (the debt avalanche) clears its first debt in month 14 and finishes in 28 months with £2,420.63 of interest. The snowball costs £303.14 more and gives you your first cleared account 7 months sooner (RightSums engine, 27 September 2026).

Put your own balances into the debt payoff planner to see both orders side by side, and read debt snowball vs avalanche to choose between them.