The debt snowball method is a debt-reduction strategy where you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment. Here’s how it works: ➡ Step 1: List your debts from smallest to largest regardless of interest rate. ➡ Step 2: Make minimum payments on all your debts except the smallest. ➡ Step 3: Pay as much as possible on your smallest debt. ➡ Step 4: Repeat until each debt is paid in full. If your biggest debt has the highest interest, it'll take a while to make progress. But if you follow the plan without worrying about interest, paying off the smallest debt quickly will excite and motivate you to work hard until you're debt-free.