Snowball method

The snowball method clears debts from smallest balance to largest, regardless of interest rate. When one debt is gone, its monthly payment is redirected to the next smallest.

Mathematically, it is rarely the cheapest route. Psychologically, it can be powerful. The early wins build momentum and make the process feel achievable.

It works best for people who need visible progress to stay motivated. For pure cost minimisation, the avalanche method usually wins.