How does the debt snowball method work?
You list your debts from smallest to largest balance, pay the minimum on all of them, and put every spare pound towards the smallest. When it's paid off, you add the money you were paying on it — its minimum plus the extra — to the next smallest debt. Your total monthly payment stays the same, but the amount hitting each target grows.
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Cover priority bills first
Rent or mortgage, council tax, energy, court fines and child maintenance come before any credit card or loan. See council tax arrears and rent arrears if you're behind.
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List your unsecured debts
For each one note the balance, APR and minimum payment. Order them smallest balance first (snowball) or highest APR first (avalanche).
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Set a fixed monthly debt budget
Total of all minimums, plus whatever extra you can reliably afford from your budget.
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Pay minimums on everything, extra on the target
Every month, the leftover after minimums goes to the target debt.
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Roll the payment on
When the target is cleared, keep the same total budget and move to the next debt in your list.
Worked example: £11,750 of debt, smallest balance first
Here's an example of someone with four debts totalling £11,750. They can afford £468 a month in total — their minimum payments of £368 plus £100 extra. The rates and minimums are illustrative and kept fixed for simplicity.
| Debt | Balance | APR | Minimum payment |
|---|---|---|---|
| Store card | £750 | 29.9% | £25 |
| Credit card A | £1,500 | 19.9% | £45 |
| Credit card B | £3,500 | 34.9% | £105 |
| Personal loan | £6,000 | 9.9% | £193 |
| Total | £11,750 | — | £368 |
End-of-month balances using the snowball (smallest first)
Each month interest is added, every minimum is paid, and the rest of the £468 goes to the smallest remaining balance.
| End of month | Store card | Credit card A | Credit card B | Personal loan | Total owed |
|---|---|---|---|---|---|
| 1 | £641.53 | £1,477.86 | £3,483.41 | £5,854.39 | £11,457.19 |
| 3 | £417.36 | £1,432.56 | £3,448.97 | £5,559.70 | £10,858.59 |
| 6 | £62.25 | £1,361.99 | £3,393.97 | £5,108.89 | £9,927.09 |
| 7 — store card cleared | £0 | £1,276.36 | £3,374.71 | £4,956.23 | £9,607.30 |
| 12 | £0 | £500.31 | £3,270.83 | £4,174.70 | £7,945.84 |
| 16 — card A cleared | £0 | £0 | £3,013.69 | £3,526.96 | £6,540.65 |
| 20 | £0 | £0 | £2,187.55 | £2,858.52 | £5,046.07 |
| 24 | £0 | £0 | £1,274.72 | £2,168.70 | £3,443.42 |
| 29 — card B cleared | £0 | £0 | £0 | £1,273.15 | £1,273.15 |
| 31 | £0 | £0 | £0 | £353.65 | £353.65 |
| 32 — debt free | £0 | £0 | £0 | £0 | £0 |
In this example the avalanche is cheaper, but the snowball gives you a cleared account in month 7 rather than month 23. For many people that early win is what keeps them going. Try your own numbers in the calculator below.
Debt snowball vs debt avalanche: which is better?
The avalanche always costs the same or less in interest, because it attacks the most expensive debt first. The snowball usually costs a little more but gives quicker wins. If your debts have similar interest rates, the difference is small and the snowball's motivation may be worth it. If one large debt has a much higher rate, the avalanche can save a lot.
| Feature | Snowball | Avalanche |
|---|---|---|
| Order | Smallest balance first | Highest APR first |
| Total interest | Same or higher | Lowest possible for the same budget |
| First debt cleared | Usually sooner | Can take longer |
| Best for | People who need visible progress | People motivated by saving money |
| Hybrid option | Clear one or two tiny balances first for a quick win, then switch to highest APR | |
Both methods leave every creditor paid in full, so neither damages your credit file as long as you keep up the minimums. If you're thinking of replacing several debts with one loan instead, compare the cost first in our debt consolidation loans guide.
Debt snowball & avalanche calculator
Enter your debts and your total extra payment. The calculator adds interest monthly, pays every minimum, puts the rest on the target debt and rolls freed-up payments on. It shows both methods and a month-by-month balance table. It's an estimate: real card minimums usually fall as balances fall, and rates can change.
Why the snowball works: momentum and small wins
Clearing a whole account early gives you visible proof the plan is working, which makes you more likely to stick with it. Research on consumer debt repayment has found that people who focus on closing individual accounts tend to make more progress than people who spread payments thinly, even though it isn't always the cheapest order mathematically.
- Fewer accounts, less stress: each closed account is one less statement and one less due date.
- The payment grows: watching the amount on your target rise from £125 to £170 to £275 a month reinforces the habit.
- Small, frequent actions help: some people move small amounts to their target debt every few days or after each payday so progress feels constant. It makes little difference to interest on most cards, but it can help motivation — just make sure the minimums still go out on time.
- Track it: a simple chart of your total balance falling each month is a strong motivator.
Step-by-step plan to start your snowball
1. Do a budget
Work out income and essential spending so your extra payment is realistic. Our debt calculator can help.
2. Keep a small buffer
A few hundred pounds for emergencies stops a surprise bill sending you back to credit.
3. Ask for lower interest
If you're struggling, lenders must consider help. See freezing interest on debts.
4. Automate minimums
Set direct debits for every minimum so you never miss one, then pay the extra manually.
5. Use windfalls
Tax refunds or bonuses can go straight to the target debt. Larger lump sums might fund a full and final settlement.
6. Stop new borrowing
Lower limits or close cleared cards if you're tempted to use them.
When the snowball method isn't enough
- you can't afford all your minimum payments, or you're borrowing to pay bills
- you're behind on rent, mortgage, council tax or energy
- you're getting default notices, court papers or letters from bailiffs
- your plan would take many years even with extra payments
A debt management plan can get interest frozen and payments reduced; Breathing Space pauses most interest and enforcement for up to 60 days; and an IVA, Debt Relief Order or bankruptcy can write off debt you can't repay. Compare them all on our debt solutions page. In Scotland, the formal options are different (for example the Debt Arrangement Scheme and Protected Trust Deeds).
Frequently Asked Questions
What is the debt snowball method?
The debt snowball is a repayment strategy where you pay the minimum on every debt, then put all your spare money towards the smallest balance. When that debt is cleared, you add its payment to the next smallest, so the amount you throw at each debt grows like a rolling snowball.
Is the snowball or avalanche method better?
The avalanche method (highest interest rate first) always costs the same or less in interest. The snowball method (smallest balance first) gives you quicker wins, which helps many people stick with the plan. If the difference in interest is small, choose the method you are most likely to keep going with.
Should I include my mortgage or car finance in the snowball?
Usually not. Mortgages, secured loans and hire purchase are normally left out, and you just keep paying them as agreed. The snowball is for unsecured debts such as credit cards, store cards, overdrafts, catalogues and personal loans. Priority bills like rent, council tax and energy must always come first.
Should I build an emergency fund before starting the snowball?
A small cushion helps, because an unexpected bill can otherwise push you back onto credit. Many people keep a few hundred pounds aside before putting extra money towards debts, then build savings further once the debts are cleared.
Should I close credit cards after paying them off?
If you are likely to use them again, closing them or reducing the limit protects your progress. Closing cards can lower your available credit, which may affect your score slightly, but avoiding new debt matters far more.
What if I cannot afford the minimum payments?
The snowball method only works if you can pay at least the minimum on every debt. If you cannot, speak to a free debt adviser. A debt management plan, Breathing Space or a formal solution may be more suitable, and creditors may agree to freeze interest.
Can't cover your minimum payments?
Free, confidential debt advice is available from StepChange, National Debtline and Citizens Advice. They can check your options without a credit search.