{"id":16841,"date":"2025-12-08T14:18:16","date_gmt":"2025-12-08T14:18:16","guid":{"rendered":"https:\/\/www.zilch.com\/uk\/?p=16841"},"modified":"2025-12-08T14:18:19","modified_gmt":"2025-12-08T14:18:19","slug":"debt-snowball-method-explained","status":"publish","type":"post","link":"https:\/\/www.zilch.com\/uk\/thegreen\/debt-snowball-method-explained\/","title":{"rendered":"Debt snowball method explained"},"content":{"rendered":"\n

Not only does it sound a little lighter than the avalanche method \u2013 it is. If you\u2019re looking for a simple, motivating way to pay off personal debt, the snowball method is it. It\u2019s all about building momentum by tackling your smallest debts first, then working your way up.<\/p>\n\n\n\n

Here\u2019s how it works, why it helps, and how to decide if it\u2019s right for you.<\/p>\n\n\n\n

What is the debt snowball method?<\/strong><\/h2>\n\n\n\n

The snowball method focuses on clearing your debts from smallest to largest, regardless of interest rate. You make minimum payments on everything, and put any extra money towards the smallest balance first.<\/p>\n\n\n\n

Once that\u2019s paid off you move to the next smallest, and so on. As the \u2018snowball\u2019 rolls, your confidence builds, and your debt shrinks. The biggest sell of the snowball method is that by tackling the smallest debts first, you get some quick wins under your belt and momentum in your back pocket to tackle the rest.<\/p>\n\n\n\n

What are the 4 steps in the debt snowball method?<\/strong><\/h2>\n\n\n\n
    \n
  1. List your debts from smallest to largest: <\/strong>Forget the interest rates and focus on the balance.
    <\/li>\n\n\n\n
  2. Keep making minimum payments on all debts: <\/strong>This keeps your accounts in good standing.
    <\/li>\n\n\n\n
  3. Throw any spare cash at the smallest debt: <\/strong>Seriously, every little helps you reach that first win.
    <\/li>\n\n\n\n
  4. Once it\u2019s paid off, move to the next: <\/strong>Repeat the process until all debts are cleared.
    <\/li>\n<\/ol>\n\n\n\n

    Does the snowball debt method really work?<\/strong><\/h2>\n\n\n\n

    Yes. Especially if you are in desperate need of some motivation. A 2016 Harvard Business Review experiment<\/a> found that participants using the snowball method paid off total balances 15% faster than those using the avalanche method. Something to note though, is that this is a measure of completion, and not cost. The avalanche method will undoubtedly mean you pay less interest. <\/p>\n\n\n\n

    Snowball vs avalanche<\/strong><\/h2>\n\n\n\n

    Snowball<\/strong> focuses on behaviour. It\u2019s great if you want quick wins to stay motivated, and a higher likelihood of following through.
    <\/p>\n\n\n\n

    Avalanche<\/strong> focuses on maths. It saves more money in the long run by clearing high-interest debts first, but you don\u2019t see wins as fast.
    <\/p>\n\n\n\n

    The decision is yours to make. If you\u2019re driven by seeing results fast, snowball could be the better fit. If you\u2019re more numbers-focused, avalanche might be a smarter choice.<\/p>\n\n\n\n

    Snowball method example<\/strong><\/h2>\n\n\n\n

    Let\u2019s say you owe:<\/p>\n\n\n\n