Debt Snowball Method

The debt snowball method orders every balance from smallest to largest. Every account keeps receiving its own required minimum payment; any money left over goes entirely toward whichever balance is currently smallest, closing accounts one at a time.

Why order by size instead of rate

Snowball focuses on earlier account payoffs. Debt avalanche targets APR instead and often produces lower modeled interest with the same debts and payment budget, depending on the entered information, model assumptions, and any debt-specific exclusions. Snowball can produce an earlier first account payoff, depending on the balances, APRs, payments, and model assumptions.

What Kalco does with it

Kalco’s snowball projection reallocates both your extra payment and any minimum freed up when a balance clears, every month, to the next-smallest balance still open. On the payoff comparison page, switch between snowball and avalanche to compare the two approaches and see their estimated payoff dates and modeled interest.