How to Pay Off Debt Using The Snowball Method

How to Pay Off Debt Fast Using the Snowball Method

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It’s not rocket science. However, you do need to understand how the Snowball Method works to pay off debt fast. Download the FTP Workbook and use the simple debt worksheet to start paying off your debt.

If you have researched the Internet you’re probably aware of all the different methods and recommendations to pay off debt.  The Avalanche Method, the Stack Method, The Snowball Method, and the 0% Balance Transfer option are just some of the techniques. Depending on the author it could even be a combination of methods and recommendations.

From an FTP Perspective, the Snowball Method is the most successful way to pay off debt.  That’s because the Snowball Method takes into consideration many of the emotional and behavioral aspects of money. The aspects that get us into debt in the first place.


How to Pay Off Debt Fast Using The Snowball Method


What is the Snowball Method?

The concept behind the Snowball Method is that you focus all your efforts on paying off the debt with the lowest balance first, by making more than the minimum monthly payment.  Pay off that debt then move that payment to your next highest balance.  Now you’re paying more than the minimum payment on the second-highest balance, which creates a “snowball” effect.  An example of this method and the steps are listed below.

  1. List all your debt, including your current minimum monthly payments. (List your debt, highest balance first and the smallest balance at the bottom)
  2. Focus on the smallest debt balance first (not the highest interest rate or the highest or lowest minimum payment) – smallest balance first! Your goal is to focus all your efforts on the smallest balance, paying more than the minimum. Throw extra cash at this balance if you have it.  Make minimum payments on the remaining debt.
  3. Once you pay off the smallest balance, move that monthly payment to the next highest debt, to speed up the payoff of the second balance. Repeat, repeat, repeat, until all your debt is paid off.


Debt Worksheet Example

snowball debt worksheet


Snowball Method Related Posts:





The Snowball Effect

Look what happens below.  Once you pay off credit card 2, that monthly payment is then moved to credit card 1.  Instead of paying $75 per month you’re now paying $100.  Pay off credit card 1 and add that payment to the student loan.  By the time you pay off both credit cards and move those payments to the student loan you’re paying $100 more than the minimum payment on the loan. That’s the snowball “effect”, each consecutive payoff of debt speeds up the payoff for the next balance.


Debt Worksheet Step-By-Step

Snowball Method



Because you’re focusing your efforts on the smallest balance first and paying more than the minimum, you see the benefits of your efforts immediately.  This is the motivational aspect (emotional) you achieve by using the Snowball Method. And it’s the primary reason FTP prefers this method. Focus and consistency (behavioral) are also critical to becoming debt-free.  When you can immediately see results and stay motivated, then you are more likely to stay focused and consistent month-to-month.

Still, confused about how the Snowball Method works? Watch this short video to learn more.

Give the Snowball Method a Try!

If you’re feeling anxious about going through the debt pay off process I highly recommend you try the Snowball Method to eliminate your debt.  You will be surprised how quickly you can pay off debt using this method, and feel confident and empowered doing it.  You will be debt-free and Filling The Pig in no time.

If getting out of debt is number one on your priority list, be sure to check out my eBook In 4 Steps. In 4 Steps will help you change the way you think about your money and help you reach your debt-free, cash-rich goals faster.


Helpful Resources:


Have you used the Snowball Method to pay off debt?  Add your comments below.


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Kevin is the owner of FTP and the author of the personal finance book series Filling The Pig. He uses his past successes and failures with debt, saving cash, investing and running home-based businesses to educate others about successful money managment and Creating a Lifestyle of Opportunities.

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