Debt snowball method The debt snowball method is a debt-reduction strategy, whereby one who owes on more than one account pays off the accounts starting with the smallest balances first, while paying the minimum payment on larger debts. Once the smallest debt is paid off, one proceeds to the next larger debt, and so forth, proceeding to the largest ones last.[1] This method is sometimes contrasted with the debt stacking method, also called the debt avalanche method, where one pays off accounts on the highest interest rate first.[2][3] The debt snowball method is most often applied to repaying revolving credit – such as credit cards. Under the method, extra cash is dedicated to paying debts with the smallest amount owed.[4] Methodology The basic steps in the debt snowball method are: List all debts in ascending order from smallest balance to largest. This is the method's most distinctive feature, in that the order is determined by amount owed, not the rate of interest charged. ...