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 trades some interest savings — debt avalanche targets APR instead and minimizes interest mathematically — for a faster string of visible wins. Closing an account outright, even a small one, is a milestone that ordering by interest rate alone doesn’t produce until much later in a payoff.

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. The payoff comparison page shows snowball and avalanche side by side so the tradeoff — sooner wins versus lower total interest — is a number you can see, not a guess.