Enter up to 3 debts and an extra monthly payment to see your snowball payoff plan.
The debt snowball method involves paying minimum payments on all debts, then putting any extra money towards the smallest balance first. Once the smallest is cleared you roll its payment onto the next smallest, creating a snowball effect that builds momentum and motivation.
The avalanche method (highest interest first) saves the most money mathematically. However, the snowball method (smallest balance first) is proven to be more effective psychologically because early wins keep you motivated. Many UK debt advisors recommend snowball for those who struggle with motivation.
Compared with making minimum payments only, the debt snowball typically reduces your payoff time by several years and can save thousands of pounds in interest. The exact saving depends on your balances, rates and the extra monthly amount you can contribute.
Yes. The debt snowball works well with UK credit cards, store cards, personal loans and overdrafts. List every debt with its balance, minimum payment and interest rate, then focus your extra payments on the smallest balance first.
Paying off debts using the snowball method generally improves your UK credit score over time. Closing accounts can have a short-term effect, but reducing your overall debt and making on-time payments will increase your score steadily.