Finance
Debt Snowball
A debt repayment strategy where you pay off debts from smallest to largest balance, regardless of interest rate. The psychological momentum of quick wins helps maintain motivation.
The snowball trades a little math efficiency for motivation: clearing small balances quickly produces visible progress that keeps people on plan. Its counterpart, the debt avalanche, targets the highest interest rate first and usually saves slightly more in total interest.
Key Formula & Relationship
Order debts by balance (smallest first), not by interest rate
Reviewed by the Calculover Editorial Team for mathematical and practical accuracy.
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