A debt reduction method whereby an individual who owes more than one debt pays off first the smallest one, then moves on to the next “smallest” debt on list, and so on. This process causes debt repayments to “snowball” or get bigger and bigger over time, like a rolling snowball. A debtor starts with the smallest debt outstanding and moves from one debt to another till the debt with the highest balance is paid off. Debt snowball allows multi-account debtors make faster results by first getting rid off the smaller debts and building repayment capacity to handle larger debts.

This technique is also known as a rolldown.