Smallest balance first
Pay off smallest debt first
Paying the smallest debt first can create early momentum, but it should be compared against interest-saving alternatives.
What to know
Why people choose it
A quick payoff can make progress visible and free up a minimum payment to roll into the next account.
What it may cost
If the smallest debt has a low APR, this method may leave high-interest debt running longer.
FAQ
Is smallest debt first the same as snowball?
Yes. The debt snowball method targets the smallest balance first.
Does snowball always cost more?
Not always. If the smallest debt is also high interest, snowball and avalanche may point to the same first target.
Related reading
Make it personal
Build your payoff plan from your real numbers.
Enter your debts once, choose your goal, and see which debt to pay first.