Debt Snowball Method
Lending & MortgagesA debt repayment strategy that pays off the smallest balance first for psychological wins, then rolls payments to the next.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding debt snowball method helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how debt snowball method impacts your specific situation.