$25,500.00
Mar 2029
39 months
$2,632.07
$2,778.27
54 months faster
Credit Card
Paid off in month 10
Nov 2026
Car Loan
Paid off in month 22
Oct 2027
Student Loan
Paid off in month 39
Mar 2029
Monthly Payment: $725.00($525.00 minimums + $200.00 extra)
Minimum Payments Only
Snowball Method
How the Debt Snowball Method Works
1. List Your Debts
List all your debts from smallest to largest balance, regardless of interest rate.
2. Attack the Smallest
Pay minimums on all debts, then throw every extra dollar at the smallest debt.
3. Roll & Repeat
Once paid off, roll that payment to the next debt. The snowball grows bigger!
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method is a debt reduction strategy popularized by Dave Ramsey. You pay off debts from smallest to largest balance, regardless of interest rate. As each debt is eliminated, you roll that payment into the next debt, creating momentum.
Why pay smallest debts first instead of highest interest?
The snowball method focuses on behavioral psychology. Quick wins from paying off small debts keep you motivated and committed to the plan. Studies show people are more likely to stick with debt repayment when they see early progress.
How much faster can I become debt-free?
By adding even a small extra payment and using the snowball method, most people can become debt-free 2-5 years faster than making minimum payments. Use the calculator above to see your specific timeline.
Should I include my mortgage in the snowball?
Typically, the debt snowball focuses on consumer debt (credit cards, car loans, student loans, personal loans). Your mortgage is usually tackled separately after becoming consumer debt-free.
Track your debt payoff journey
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