Does The Debt Snowball Method Really Work?
Does the debt snowball method really work? It is one of the most-searched questions in personal finance, and I asked it myself back in September 2018 — standing at the bottom of a $127,229 mountain of debt with my husband, wondering if we would ever see daylight again. Fast forward to today: we have paid off $89,979, knocked our 15 debts down to just 2, and watched our credit scores climb from the upper 600s into the mid 800s. The debt snowball method did not just work for us — it changed everything.
In this post I will explain exactly what the debt snowball method is, walk you through the four simple steps, share our real numbers, and help you decide if it is the right payoff strategy for you. No fluff, no theory — just what actually happened when a real family tried it.
What Is the Debt Snowball Method?
The debt snowball method is a debt payoff strategy where you attack your debts from the smallest balance to the largest — regardless of interest rate — while continuing to make minimum payments on everything else. Each time you eliminate a debt, you take the payment you were making on it and roll it into the next-smallest debt. Like a snowball rolling downhill, your payment grows bigger and faster with every debt you crush.
It is the opposite of what a spreadsheet would tell you to do. Mathematically, paying the highest-interest debt first (the “avalanche” method) saves more money. But the debt snowball method was not designed for spreadsheets — it was designed for human beings. And human beings need wins to keep going.
How the Debt Snowball Method Works: 4 Simple Steps
One of the best things about the debt snowball method is how dead simple it is. No special software, no complicated math — just a pen, paper, and honest numbers.
Step 1: List every debt, smallest balance first
Write down ALL of your debts except your mortgage — credit cards, car loans, medical bills, student loans, personal loans, money owed to family. Everything. Then order the list from the smallest balance at the top to the largest at the bottom. When we did this in September 2018, our list had 15 items: 8 credit cards, 1 car loan, 2 medical loans, 2 student loans, 1 personal loan, and 1 personal loan from family. Seeing it all on one page was terrifying — and weirdly motivating.
Step 2: Pay minimums on everything
Keep making the minimum payment on every debt so nothing goes late and your credit stays intact. This is non-negotiable. Late fees and penalties will eat your progress alive.
Step 3: Throw every extra dollar at debt #1
Whatever money is left after your budget, bills, and savings goes straight to the smallest debt on your list. This is where the real magic happens — and where most people need to get creative. We found extra money by cutting subscriptions, selling things we did not need, and picking up side income. My best money saving tips post covers the exact moves we used to free up cash each month.
Step 4: Roll the payment into the next debt
The moment debt #1 hits zero, take its entire old payment and add it to the minimum payment on debt #2. When #2 is gone, that combined payment rolls into #3 — and so on until you reach your debt-free goal. Your monthly “snowball” payment keeps growing, which is why the payoff accelerates so dramatically in the later months.
Does the Debt Snowball Method Really Work? Our Real Results
Short answer: yes — spectacularly. Here are our actual numbers.
September 2018 (starting point):
15 debts totaling $127,229. Credit scores in the upper 600s to low 700s. We felt buried.
June 2020 (21 months later):
2 debts totaling $37,250 — one student loan and one family personal loan. Credit scores in the mid 800s. We had paid off $89,979.
The most shocking part? We paid down more than $50,000 in the first 10 months alone. Going from 15 debts to a handful that fast felt like a superpower. Every few weeks another account hit zero, and each zero fueled the next push. You can follow the month-by-month numbers in our debt payoff journey updates if you want the full play-by-play.
Why the Debt Snowball Method Works So Well
The secret is psychology, not math. Here is what actually kept us going:
Quick wins build momentum. Our smallest debts died within weeks, not years. Each “paid in full” gave us a dopamine hit that no interest-rate calculation ever could. If you have ever quit a diet or a workout plan, you know motivation matters more than the perfect plan.
Fewer bills means less stress. Every debt you kill is one less minimum payment, one less due date, one less account to think about. By the time we were down to a few debts, our financial life felt dramatically simpler — and simplicity is sustainable.
It is easy to stick with. The debt snowball method never asks you to do complex math or constantly re-optimize. List, pay minimums, attack the smallest, repeat. When life gets chaotic — and it will — a simple plan survives. A complicated one does not.
That is also why I always say: the best debt payoff method is the one you will actually finish. For us, that was the snowball, hands down.
Debt Snowball vs. Debt Avalanche: Which Is Better?
You will hear endless debate about this. Here is the honest breakdown:
The avalanche (highest interest rate first) saves you the most money in interest. If you are highly disciplined and motivated by numbers, it is the mathematically optimal choice.
The snowball (highest interest first) costs a bit more in interest but delivers fast wins that keep you motivated. Studies on consumer behavior consistently show people are more likely to finish with the snowball method.
My take after living it: unless the interest difference is enormous, choose the snowball. Paying a few hundred extra in interest is a small price for a method you will actually complete. An unfinished “optimal” plan saves you nothing. If you want the deep dive on the avalanche approach, Investopedia’s explainer lays out both methods clearly, and Dave Ramsey’s guide is the classic walkthrough of the snowball plan that inspired so many families — including ours.
Is the Debt Snowball Method Right for You?
The debt snowball method is a great fit if any of these sound like you:
You have multiple debts and feel overwhelmed just looking at them. You have tried to get out of debt before and lost motivation. You want a plan simple enough to follow on your worst, busiest week. You would rather pay a little extra interest in exchange for fast, visible progress.
It may not be ideal if you have one massive high-interest debt dwarfing everything else and you are extremely disciplined — in that specific case, run the numbers on the avalanche first.
Either way, start today. List your debts tonight — smallest to largest — and make your first extra payment this week. Do not wait for the perfect month or the perfect budget. We started our debt snowball method journey scared and imperfect, and it still carried us from $127,229 to nearly debt-free. If it worked for us, it can work for you. For more inspiration, read Kaleb’s $110,000 debt-free story — proof that ordinary people finish extraordinary payoffs every day.
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method is a payoff strategy where you list all non-mortgage debts from smallest balance to largest, make minimum payments on all of them, and throw every extra dollar at the smallest debt. When it is paid off, you roll that payment into the next debt — growing your payment like a snowball until you are debt free.
Does the debt snowball method really work?
Yes. Using the debt snowball method, one family paid off $89,979 of $127,229 in debt over 21 months, reducing 15 debts to just 2 and raising their credit scores from the upper 600s to the mid 800s. More than $50,000 of that was paid in the first 10 months, driven by the quick wins the method creates.
Is the debt snowball better than the debt avalanche?
The avalanche (highest interest first) saves more money mathematically, but the snowball (smallest balance first) produces faster wins that keep people motivated — and people are more likely to finish what they start with the snowball. Unless the interest gap is huge, the method you will actually complete is the better choice.
Should I include my mortgage in the debt snowball?
No. The standard debt snowball method excludes the mortgage — you list only non-mortgage debts like credit cards, car loans, student loans, and medical bills. The mortgage is typically tackled last, after every other debt is gone.
How fast can you pay off debt with the snowball method?
It depends on your income, expenses, and how much extra you can throw at the smallest debt. The family in this post paid over $50,000 in the first 10 months by combining the snowball with strict budgeting and extra income. Your timeline will be your own — but the method accelerates as each paid-off debt adds its payment to the snowball.
Emily Carter is the founder and editor of Her Everyday Nest. After nine years of renting in five apartments across three cities, she's learned how to make any rental feel like home.
