A debt repayment strategy where, after making minimum payments on everything, all extra money goes toward the debt with the smallest balance first, regardless of its interest rate — prioritizing quick wins and motivation over minimizing total interest.
The debt avalanche method is mathematically optimal, but paying down debt is also a psychological marathon, and math doesn't always win against motivation. The snowball method deliberately ignores interest rates and instead knocks out the smallest balance first — giving you a fast, real "I paid this off completely" win that builds momentum to keep going, even if it costs a bit more in total interest over time.
Avalanche saves more money. Snowball tends to keep more people motivated through to the finish line. Neither is "wrong" — the better method is usually whichever one someone will actually stick with until the debt is gone.
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