Build momentum by clearing small debts first.
Personal finance is 80% behavior and only 20% head knowledge. While the Debt Avalanche method focuses on interest rates, the Debt Snowball Methodโfamously championed by financial experts like Dave Ramseyโfocuses purely on psychological wins. If you need motivation to get out of debt, this calculator will show you exactly where to start.
To use the Snowball method, you ignore the interest rates completely. You list all your debts from the smallest balance to the largest. You pay the minimums on everything, but you take every spare dollar you have and attack the smallest balance. Once that small debt is paid off, you take the money you were using for it and add it to the minimum payment of the next smallest debt. Like a snowball rolling down a hill, your payments grow larger and faster, giving you the emotional momentum needed to tackle the massive loans at the end of the list!
AI-generated estimates. No guarantee of accuracy. We assume no liability for decisions based on these results. Independent verification is recommended.