What is the debt snowball method and does it work?

The debt snowball method is a debt repayment strategy where you pay off your smallest debts first while making minimum payments on larger ones. Once the smallest debt is eliminated, you roll that payment amount into the next smallest debt, creating a growing "snowball" of payments as you work up to larger balances. Research and financial experts like Dave Ramsey, who popularized it, argue it works well because of the psychological wins you get from eliminating debts quickly. Studies, including one from Harvard Business Review, support this, showing people stay more motivated when they see accounts fully paid off. However, mathematically it costs more in interest than the debt avalanche method, which targets high-interest debt first. It works best for people who need motivation to stay on track.