debt snowball

This is a debt-reduction strategy where you pay off debt in order of smallest to largest until all accounts are paid off. As you roll the money used from the smallest balance to the next on your list, the amount “snowballs” and gets larger and larger and the rate of the debt that is reduced is accelerated. This is done by listing your debt regardless of interest rate from smallest to largest, then you start paying the smallest amounts first and them work your way up the debt ladder until you have successfully paid off all your debts.