The debt snowball method is a debt repayment strategy where you pay off debts in order from smallest balance to largest, regardless of interest rate.
How it works
- List all debts smallest balance to largest
- Pay the minimum on everything except the smallest debt
- Put every spare pound toward the smallest debt until it is cleared
- Roll that payment into the next-smallest debt, and repeat
Snowball vs avalanche
The debt avalanche method instead targets the highest-interest debt first, which saves more money mathematically. The snowball method often works better in practice for many people because clearing a whole debt quickly builds visible momentum and motivation to keep going.
This is general information, not financial advice. For free, independent debt help, contact StepChange or National Debtline.
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