The debt snowball method: how it works and why it beats the alternatives

How the snowball works

List all your debts from smallest balance to largest, regardless of interest rate. Pay minimum payments on everything. Put every spare pound at the smallest debt. When it is cleared, roll the entire payment (minimum + extra) to the next debt. Repeat. The payments grow — like a snowball — as each debt is cleared.

Why it outperforms the avalanche in practice

The avalanche (highest interest first) is mathematically cheaper. The snowball typically costs slightly more in interest. But the snowball produces quick wins — clearing the first small debt feels like real progress and sustains motivation. Research consistently shows people are more likely to complete the snowball than the avalanche.

Getting started today

List every debt with its balance, minimum payment and interest rate. Sort by balance. Calculate how much extra you can throw at debt 1 this month. Use our free debt snowball tracker to see the payoff order and track progress.

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Frequently asked questions