debt snowball
Pay smallest first
A debt snowball is a repayment strategy where you pay off debts from smallest to largest balance, regardless of interest rate.
After eliminating the smallest debt, you roll that payment into the next smallest, creating momentum—like a snowball growing as it rolls downhill.
The approach prioritizes psychological wins over mathematical optimization: We used the debt snowball method to pay off three credit cards in two years.
- avalancheRapid mountain snow collapse
- payoffCulminating benefit received
- freedomAbsence of constraint
- momentumProduct of mass, velocity
- smallestLeast in dimension
balance · payment · Dave Ramsey · envelope · budget · crushing · rolling · victory · motivation · elimination · minimum · interest · credit card · loan · principal · tackle · knock out · baby steps
- debtcreditor, owe, lender, unpaid, borrower
- personal financesavings, income, credit, investments, bills
- debt reliefloan forgiveness, bankruptcy protection, fresh start, student loan forgiveness, mortgage relief
- money goalssave money, savings goal, financial goals, emergency fund, retirement savings
- money tipsbudgeting, emergency fund, investing, rainy day fund, expense tracking
- financebank, CFO, banks, controller, finance
debt snowballfinancial independence
Wealth sustaining indefinite living
financial freedom · debt freedom · wealth building · emergency fund · nest egg
debt, debts, debtor, debtors, indebted, indebtedness, snow, snows, snowy