The debt snowball method is a debt reduction strategy where you pay off debts in order from smallest balance to largest, regardless of interest rate. You make minimum payments on all debts except the smallest, which receives all your extra money. Once the smallest debt is paid off, its payment rolls into the next smallest, creating a snowball effect.

The primary advantage of the snowball method is psychological motivation. Paying off small debts quickly gives you a sense of accomplishment and momentum. Research has shown that this emotional boost makes people more likely to stick with their debt payoff plan compared to purely mathematical approaches.

The trade-off is that you may pay slightly more in total interest compared to the avalanche method, which targets the highest rate first. However, for many people the behavioral benefit of quick wins outweighs the mathematical difference. The best debt payoff method is the one you will actually follow through to completion.