The Snowball Method – a Powerful Strategy for Paying Off Debt Faster

Posted on October 17, 2023 by Mihir (Mike) Chande, CPA, CA, CIRP, Licensed Insolvency Trustee

When it comes to managing and paying off debt, the process can often feel overwhelming. High interest rates and multiple balances can make it seem like you’re running on a treadmill — working hard but not making much progress. This is where the Snowball Method comes in, a strategic approach to debt repayment that not only simplifies the process but also accelerates your journey to becoming debt-free.

Understanding the Snowball Method

The Snowball Method is a debt repayment strategy focused on paying down debts from the smallest balance to the largest, regardless of the interest rate. This method is about gaining momentum — much like a snowball rolling downhill — by celebrating small victories. Here’s how it works:

  1. List Your Debts: Write down all your debts in order from smallest to largest balance.
  2. Minimum Payments: Continue to make minimum payments on all your debts.
  3. Extra Payments: Put any extra money toward the debt with the smallest balance.
  4. Roll Over Payments: Once the smallest debt is paid off, roll the amount you were paying on it into the next smallest debt.
  5. Repeat: Continue this process, each time rolling over payments to the next smallest debt, until all debts are paid off.

The Psychology Behind the Snowball Method

The primary advantage of the Snowball Method is psychological. By quickly paying off smaller debts, you create a sense of accomplishment and motivation. This feeling of progress is essential because it keeps you motivated to stick with your debt repayment plan.

Comparing with Other Methods

Another popular strategy is the Avalanche Method, where you pay off debts starting with the highest interest rate. This method can save you money on interest over time but doesn’t provide the same immediate psychological wins as the Snowball Method. Choosing between these methods depends on what you value more: immediate, tangible progress or long-term interest savings.

Implementing the Snowball Method

Implementing this method requires organization and discipline:

  1. Budgeting: Develop a realistic budget to identify extra money to allocate toward your debt.
  2. Prioritization: Prioritize your extra payments toward your smallest debts.
  3. Consistency: Stay consistent with your payments and avoid taking on new debt.

Benefits of the Snowball Method

  • Quick Wins: Small balances disappear faster, providing a sense of achievement.
  • Simplified Finances: Fewer debt accounts to manage over time.
  • Increased Motivation: Early success fuels further effort and commitment.

When to Consider Other Debt Relief Options

While the Snowball Method is effective, sometimes the debt situation is too overwhelming for such strategies. If you’re facing extremely high debts, or struggling with high-interest rates, exploring other debt relief options might be necessary. In cases like these, professional advice on debt relief or Bankruptcy: Help & Advice can provide alternative solutions.


The Snowball Method can be an empowering approach to debt repayment. By focusing on small, manageable goals, it keeps you motivated and on track. Remember, the key to debt repayment is not just the method you choose, but your commitment to the process and your willingness to adjust your spending habits and lifestyle. Whether it’s the Snowball Method, another repayment strategy, or seeking professional debt relief solutions, the journey to financial freedom is a step-by-step process that requires patience, discipline, and the right strategy.

Frequently Asked Questions (FAQs)

Q1. Is the Snowball Method right for everyone?

A: The Snowball Method is ideal for individuals who need quick wins to stay motivated in their debt repayment journey. However, it may not be suitable for those with high-interest debts where the Avalanche Method might save more in interest payments.

Q2. Can I combine the Snowball Method with other debt repayment strategies?

A: Yes, it’s possible to combine the Snowball Method with other strategies. For instance, some people start with the Snowball Method for quick wins and then switch to the Avalanche Method later.

Q3. How quickly can I pay off my debts with the Snowball Method?

A: The speed at which you can pay off your debts using the Snowball Method depends on factors like your total debt, interest rates, and how much extra you can pay towards your debts each month.

Q4. Should I consider debt consolidation with the Snowball Method?

A: Debt consolidation can be considered if managing multiple debts becomes overwhelming. However, it’s important to not accrue additional debts and remain focused on the overall goal of debt reduction.

Q5. Is it necessary to consult a financial advisor before choosing a debt repayment method?

A: While not necessary, consulting a financial advisor or a debt relief specialist can provide personalized advice and help you make an informed decision based on your specific financial situation.

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Mihir Chande
Mihir (Mike) Chande, CPA, CA, CIRP, Licensed Insolvency Trustee Mike, a Chartered Accountant, began his insolvency career in the Corporate Insolvency and Restructuring group at one of Canada’s largest insolvency firms. After gaining extensive experience, he founded Chande Debt Solutions to offer personalized and empathetic debt relief services to clients seeking an alternative to traditional solutions.

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