What Is Debt Snowball Method?
From the SB Advisors Academy money glossary · Free, no signup
A debt payoff strategy where you pay minimums on all debts and direct all extra money to the smallest balance first, building momentum through quick wins.
A worked example
You have a $400 medical bill, a $1,200 credit card, and a $6,000 car loan. Snowball says eliminate the $400 bill first for the psychological win.
Category
Part of the "Credit and Debt" group in the money glossary.