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How to use the Debt Snowball Method to pay all your dues

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debt snowball

One of the most stressful feelings in the world is having pending debts. It can affect both your mental and physical health. While you can’t go back in time to simpler days and be that child that used to love playing on the cold snowy days, you can use the debt snowball method to eliminate your financial woes. 

What is the debt snowball method?

Everybody knows that if you keep rolling a small snowball, it’ll gain speed and momentum until it gets bigger and bigger and bigger. “How does this apply to the debts I have?” you might ask. Simple!

The debt snowball method is a strategy to reduce debt. You start paying debts from the smallest to the largest, so you’ll keep progressing each month. Once the smallest debt is paid completely, the portion of your budget used there will now go to the second debt, then to the third, and so on. 

Keep in mind this is not only a money issue; your mind also plays a big role. It is proven that when you finish paying a debt, you feel more confident and motivated to pay other dues. 

How can you start using the debt snowball method?

Here you have some tips if you want to start using the debt snowball method:

  • Make a list of all your debts: Student loans, credit card debt, car loans, mortgages, medical loans, etc.
  • Organize them from smallest to biggest. Check the amount of money you have to pay for each one without having interests in consideration.
  • Check your monthly budget. Knowing how much money you have available is important to pay your debts. You can use a strategy like the 50/20/30 Rule to help you manage your payments.
  • Organize your payments. Divide your money so you pay a certain amount to each debt each month. 
  • Focus on the smallest debt. The biggest amount of money you’ll pay goes to the first debt on your list.
  • Advance progressively. Once you finish paying a debt, place the money you would use on that debt, into the next one.
  • Repeat this process until you are debt-free.
  • Make it rain! Thanks to the debt snowball method, you can finish paying all your debts more effectively. Now you’re free to use that money to invest or purchase a little something for yourself.


Keep in mind that increasing your income is always a helpful option. You’ll be able to pay for everything faster if you find different ways to make some extra money. You can look for a part-time job, have a garage sale, or ask for a raise at your current job. Take a look at our list of side hustle ideas that could come in handy for you.

Does it work?

One common question that always comes up when talking about the debt snowball method is: Does this really work? 

This is just one strategy, rather than a ‘one-size-fits-all’ solution. However, the debt snowball method can be helpful and effective when you have more than one pending debt.

Besides helping you to organize your money, the best thing this strategy has is its psychological influence. Once you pay off the smaller amounts of money, it may boost your confidence and encourage you to pay what’s left following the same path. 

Just like the famous financial counselor Dave Ramsey says… “The debt snowball works because it’s all about behavior modification, not math”.

Wrapping it up

Now that you know about the debt snowball method, don’t stress out! Your mind plays a big role in this. You should analyze your situation calmly and, if it’s the best choice for you, start using the debt snowball method. 

We hope these tips can help you reach your goals, stay focused on paying everything you owe, and sooner or later you’ll be debt-free! Make sure to explore the rest of articles in our blog to find more personal finance tips and simple ways to save money.

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