With the debt snowball, you pay minimums on everything and put every extra dollar on your smallest balance. When it's gone, you roll that payment into the next smallest.
How
- List debts from smallest balance to largest
- Pay the minimum on every debt
- Put all extra money on the smallest
- When it's paid off, add its payment to the next one
- Repeat until you're debt-free
Why people like it
Paying off a whole debt quickly feels great, and that motivation helps many people stick with the plan. It may cost a little more interest than the avalanche method.
General educational information, not financial or legal advice. Nickel Keepers isn't paid by any lender, card company or debt relief company.