Definition
Debt Snowball
A payoff strategy that targets your smallest debt balance first for quick wins.
With the debt snowball, you pay minimums on everything and throw every extra dollar at your smallest balance. Once it is gone, you roll that payment into the next smallest, building momentum like a snowball rolling downhill.
It costs slightly more in interest than the avalanche method, but the early wins keep many people motivated enough to actually finish, which is why it is so widely recommended.