I know when I first started taking an interest in personal finance, one term I heard pop up frequently was that of the debt snowball. For those new to the concept, it is a debt paydown strategy, popularized by Dave Ramsey, where you pay down your debts in order from smallest to largest. This can be applied when you have one or more debt, and are able to afford to pay at least the minimum required payment. Utilizing this method, extra cash is allocated to paying debts with the smallest amount owed. After the smallest debt is paid off, you then move onto paying the next slightly larger small debt above that. Thus seeing the debts drop off one by one, gives you a psychological win as well.
However, there are some questions you might have about the method itself and want to dive in a little bit further. Read on for more.