What is the ‘snowball method’? Viral budgeting strategy is helping thousands pay off debt — fast
The “snowball method” is going viral on TikTok, with its creator claiming it’s the fastest way to pay down debt.
Dave Ramsey, the famed finance expert who is the brains behind the budgeting hack, explained that the method is designed to build momentum in the same way as a snowball being rolled downhill.
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To start, you list your debts from smallest to largest — which makes it a good method for those who have multiple sources of debt.
Ramsay says you make minimum payments on everything but the smallest debt, and you “attack the little one with a vengeance.”
“Scorched-earth lifestyle. Sell so much the kids think they’re next,” he quipped.
When that one is gone, take the payment that was going to that debt and and roll it over to the second smallest debt.
And when that one’s gone, take the payments from one and two, and “the snowball rolls over again, it picks up more snow and you attack number three” — and so on.
In one viral video with 1.4 million views, TikTok user @wheretfisallmymoney explained how to pay off $10,000 of debt in just 19 months using the snowball method without exceeding more than $500 per month in payments.
Another user shared that she has a plan to use the snowball method to pay off $90,000 in debt over the course of three years, but she put her own twist on it.
Rather than looking at each item as its own debt, she split it up into three categories: small bills, car payments and student loans — working on tacking the small bills before making her way to her car payments and eventually her student loan debt.
Meanwhile, user @finfabwiththea shared that they paid off her debt of £15,000 — or a little over $20,000 USD — using the snowball method.
“I would use it all over again if I were to get out of debt,” she said. “Paying off that first small debt gave me this feeling of joy, this feeling of a win, which made me so happy and felt like something was being done.”
“The debt snowball method creates behavior change through motivation and consistency, helping you stay focused as you eliminate debt,” the Ramsey Solutions website noted.
“When you see your debt snowball actually working, you’re more likely to stick with it.”
Let’s be honest—no matter how stressful the day gets, a good viral video can instantly lift your mood. Whether it’s a funny pet doing something silly, a heartwarming moment between strangers, or a wild dance challenge, viral videos are what keep the internet fun and alive.