Frequently Asked Questions
Does the debt snowball actually work?
Yes. Millions of people have used it to become debt-free. Multiple research studies confirm that the early-wins approach increases completion rates. The method works not despite ignoring interest rates, but because the behavioral advantage of closing accounts outweighs the mathematical disadvantage for many people.
How much more interest does the snowball cost?
It depends on the spread between your interest rates and the sizes of your debts. In our four-debt example, it costs about $750 more than the avalanche over 24 months. But if your rates are all within a few points of each other, the difference might be under $200. The wider the rate spread and the longer the payoff timeline, the more the snowball costs.
Should I include my mortgage in the snowball?
Most financial experts recommend excluding your mortgage from the snowball and focusing on consumer debt first. Mortgage rates are typically low (3–7%), the balance is enormous, and the tax deduction may reduce the effective rate further. Focus the snowball on credit cards, personal loans, car loans, and student loans. Once those are gone, you can decide whether to aggressively pay the mortgage or invest.
What if I have payday loans?
Payday loans and other predatory debt (100%+ APR) should be treated as financial emergencies regardless of which method you use. Their interest rates are so extreme that even the snowball should prioritize them if they’re not already the smallest balance. Our complete debt payoff framework covers how to triage predatory debt.
Is there a way to get the wins without paying extra interest?
Yes — the hybrid debt payoff method limits quick-win logic to debts you can eliminate in 90 days or less, then switches to interest-rate order. You capture the first few motivational wins at almost no extra cost, then let math drive the rest of the journey.