Debt snowball can be an uplifting way to tackle debt. You prioritize loans from smallest to largest and gain motivation as you pay off debts quickly.

With the debt snowball method, you pay off your debt with the smallest balance first. Once that’s paid, you roll the amount that was going toward that bill into paying off your next-smallest debt.

With this method, you still make the minimum payment on all of your debts. The key is to add whatever extra money you can spare toward the account with the smallest balance.

The amount you’re able to pay toward debt grows as you close out loans. You know, like a snowball rolling down a hill that picks up more snow with every turn.

How to do debt snowball

1. List your debts (not including your mortgage) in order of smallest to largest balance. Ignore interest rates.
2. Pay the minimum monthly payment for every debt.
3. Calculate how much extra money you can devote to debt payoff. 
4. Put that extra cash toward your smallest debt until you pay it off — even if you are paying more interest on a different one.
5. Next, take the entire amount you were paying toward it (monthly minimum, plus the additional cash) and target the next-smallest debt.
6. As you knock off debts, you can put all the freed-up money toward the next one in line.

Debt snowball example

Let’s say you have the following debts and can add an extra payment of $200 per month:

• A $1,200 hospital bill with no interest.
• A $3,000 credit card balance at 15.9% interest.
• A $5,000 credit card balance at 22.9% interest. 

Pay the minimum on all balances, and add the extra $200 to the $1,200 hospital bill first, even though the credit cards are charging more in interest. The goal is to get quick wins and build momentum.

Who should use the debt snowball method?

Consider the debt snowball method if you’re motivated by small wins. This approach can provide the early satisfaction of seeing debts wiped out one by one.

It’s mindset over math. Sure, paying down higher-interest rate debt first makes numerical sense. But going small and actually closing out loans can give you the satisfaction to keep going.

Meanwhile, the debt avalanche strategy is more about the numbers. It has you prioritize paying off high-interest debt first to save the most money. While this method can indeed save you more over time, it can take longer to get the first debt paid off.

If your unsecured consumer debts — such as credit cards and personal loans — would take more than five years to pay, consider exploring debt relief options.

Debt snowball pros and cons

As you’re thinking about whether this is the strategy for you, consider the advantages and disadvantages.

Pros

Creates early wins.

Easy to understand and track.

Works well for people who have trouble staying motivated.

Cons

You might pay more interest than with the debt avalanche.

Not ideal if you have big balances with high interest rates.

Add ‘debt snowflakes’ to your snowball

“Debt snowflakes” are small daily savings. For example, cutting out one restaurant meal per week and putting what you’d spend there toward a debt payment is a snowflake. Pack that onto your growing snowball because every little bit counts.

Look for ways to free up more money

Speed up your snowball-rolling by putting more money toward debt. You could start a side hustle to earn more. You could also negotiate with service providers to spend less on bills like internet and cell phone.

A recent NerdWallet study found that the top two most cited debt payoff strategies for Americans who have ever had revolving credit card debt are spending less money (46%) and increasing income (35%), both of which could help you add cash to debt payments.

Additionally, you can try to get lower rates on larger, high-interest debts. Debt consolidation, which combines multiple debts into a single payment, usually at a lower interest rate, could be an option.

• You may be able to transfer a credit card balance to a lower-rate card, or one with a 0% introductory APR.
• You could also look into a debt consolidation loan.

Future-Proof Gifts: Savings Bonds for Grandchildren

Looking for a meaningful gift that stands the test of time?

Buying savings bonds for grandchildren is a fantastic way to show your love while investing in their future. Unlike toys that may break or clothes they’ll outgrow, a savings bond keeps growing—just like your grandchildren!

Savings bonds can also help teach kids about money, patience, and saving for the future. In this guide, we’ll walk you through what savings bonds are, why they’re such a thoughtful gift, how to buy them, and how to transfer them when the time is right.

What Are Savings Bonds?

Savings bonds are simple, safe investments issued by the U.S. government. Think of them as a way to loan money to Uncle Sam, and in return, the government pays you interest. Over time, the bond becomes worth more than what you originally paid.

• Series EE Bonds – These bonds double in value after 20 years.
• Series I Bonds – These bonds earn interest and help protect against inflation, so their value keeps up with rising prices.

Both types of bonds are super safe, making them a reliable choice for a child’s future.

Why Savings Bonds Make a Great Gift for Grandchildren

Savings bonds are more than just money. They’re a lesson, a promise, and a thoughtful way to say, “I’m thinking about your future.” Here’s why they’re such a great gift:

• Teach Financial Lessons – Kids learn about saving, waiting, and how money can grow.
• Build Future Value – Over time, the bond will be worth more than its original purchase price.
• Perfect for Milestones – They’re ideal for big expenses like college tuition, a first car, or other important milestones.
• Show Thoughtfulness – A savings bond lasts for years, reminding your grandchild of your love and care.
• Safe and Sound – Backed by the U.S. government, they’re one of the safest investments around.

Where to Buy Savings Bonds for Grandchildren

Gone are the days of walking into a bank to buy a paper savings bond. Today, it’s all done online through the TreasuryDirect website. This is the official U.S. government website for purchasing savings bonds and other treasury securities.

While savings bonds are no longer available in paper form at banks or credit unions, you can easily purchase them online through a simple process.

How to Buy Savings Bonds for Grandchildren: Step-by-Step

Follow these steps to buy a savings bond for your grandchildren:

1. Set Up a TreasuryDirect Account – To purchase savings bonds, you’ll need to go to the TreasuryDirect.gov website.
   • Click on Open an Account.
   • Follow the instructions to provide your name, email, and bank account information.
   • Choose a password and security questions for your account.

This will be your account for buying and managing savings bonds.

2. Set Up a Gift Savings Bond – Once your account is ready, you can buy a bond as a gift.
   • Log in to your TreasuryDirect account.
   • Click on the BuyDirect option.
   • Choose the type of bond you want to purchase – EE Bond or I Bond.
   • Enter the amount you want to spend (you can buy bonds for as little as $25).
   • Select This is a Gift and provide your grandchild’s details:
     • Their full name
     • Social Security number (ask the parents for this if you don’t have it)
   • Review the information and confirm the purchase.
3. Deliver the Gift – Since savings bonds are now digital, you won’t receive a paper bond. Instead, the bond will be held in your TreasuryDirect account until your grandchildren have their own account.
   
   To give the bond:
   • Let your grandchildren and their parents know you bought it.
   • When your grandchildren are ready, they can open their own TreasuryDirect account and you can transfer the bond to them.

If you want to give something physical, print a certificate with details about the gift. TreasuryDirect offers templates you can use to make the gift feel extra special.

Tips for Gifting Savings Bonds to Grandchildren

Here are some helpful tips to make the process even smoother:

• Start Small – You can buy savings bonds for as little as $25, so it’s affordable for any budget.
• Add a Personal Touch – Print out a gift certificate or write a heartfelt note explaining why you bought the bond.
• Think Long-Term – Savings bonds are meant to grow over time, so they’re a great choice for milestones like college or a first home.
• Check the Limits – You can buy up to $10,000 in bonds per year, per person.

Transferring Savings Bonds to Your Grandchildren

When your grandchildren are ready to manage their own money, it’s time to transfer the bond. Here’s how:

1. Ensure They Have a TreasuryDirect Account – Your grandchild (or their parent) will need to open their own TreasuryDirect account. This is a quick process, similar to how you created your account.
2. Initiate the Transfer
   • Log in to your TreasuryDirect account.
   • Select ManageDirect, then click Transfer Securities.
   • Choose the bond you want to transfer and enter your grandchild’s account information.
   • Confirm the transfer.

Once the transfer is complete, the bond will appear in your grandchild’s TreasuryDirect account. They can then decide when to redeem it.

The Bottom Line: A Gift That Grows

Giving a savings bond isn’t just about the money. It’s about planting a seed for your grandchildren’s future and showing them that you believe in their dreams. With every year that passes, the bond’s value grows—and so does the love and care behind it.

Whether you buy an EE Bond or an I Bond, your grandchildren will benefit for years to come. And who knows? One day, they might thank you for helping them pay for college or buy their first car.

So next time you’re looking for a gift, skip the toy aisle and give something that lasts. A savings bond is more than just a present; it’s a promise to help them reach their potential.

Debt snowball can be an uplifting way to tackle debt. You prioritize loans from smallest to largest and gain motivation as you pay off debts quickly.

Updated Feb 23, 2026
Fact Checked

With the debt snowball method, you pay off your debt with the smallest balance first. Once that’s paid, you roll the amount that was going toward that bill into paying off your next-smallest debt.

With this method, you still make the minimum payment on all of your debts. The key is to add whatever extra money you can spare toward the account with the smallest balance.

The amount you’re able to pay toward debt grows as you close out loans. You know, like a snowball rolling down a hill that picks up more snow with every turn.

How to do debt snowball

1. List your debts (not including your mortgage) in order of smallest to largest balance. Ignore interest rates.
2. Pay the minimum monthly payment for every debt.
3. Calculate how much extra money you can devote to debt payoff. 
4. Put that extra cash toward your smallest debt until you pay it off — even if you are paying more interest on a different one.
5. Next, take the entire amount you were paying toward it (monthly minimum, plus the additional cash) and target the next-smallest debt.
6. As you knock off debts, you can put all the freed-up money toward the next one in line.

Debt snowball example

Let’s say you have the following debts and can add an extra payment of $200 per month:

• A $1,200 hospital bill with no interest.
• A $3,000 credit card balance at 15.9% interest.
• A $5,000 credit card balance at 22.9% interest. 

Pay the minimum on all balances, and add the extra $200 to the $1,200 hospital bill first, even though the credit cards are charging more in interest. The goal is to get quick wins and build momentum.

Who should use the debt snowball method?

Consider the debt snowball method if you’re motivated by small wins. This approach can provide the early satisfaction of seeing debts wiped out one by one.

It’s mindset over math. Sure, paying down higher-interest rate debt first makes numerical sense. But going small and actually closing out loans can give you the satisfaction to keep going.

Meanwhile, the debt avalanche strategy is more about the numbers. It has you prioritize paying off high-interest debt first to save the most money. While this method can indeed save you more over time, it can take longer to get the first debt paid off.

If your unsecured consumer debts — such as credit cards and personal loans — would take more than five years to pay, consider exploring debt relief options.

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Debt snowball pros and cons

As you’re thinking about whether this is the strategy for you, consider the advantages and disadvantages.

Pros

Creates early wins.

Easy to understand and track.

Works well for people who have trouble staying motivated.

Cons

You might pay more interest than with the debt avalanche.

Not ideal if you have big balances with high interest rates.

Add ‘debt snowflakes’ to your snowball

“Debt snowflakes” are small daily savings. For example, cutting out one restaurant meal per week and putting what you’d spend there toward a debt payment is a snowflake. Pack that onto your growing snowball because every little bit counts.

Look for ways to free up more money

Speed up your snowball-rolling by putting more money toward debt. You could start a side hustle to earn more. You could also negotiate with service providers to spend less on bills like internet and cell phone.

A recent NerdWallet study found that the top two most cited debt payoff strategies for Americans who have ever had revolving credit card debt are spending less money (46%) and increasing income (35%), both of which could help you add cash to debt payments.

Additionally, you can try to get lower rates on larger, high-interest debts. Debt consolidation, which combines multiple debts into a single payment, usually at a lower interest rate, could be an option.

• You may be able to transfer a credit card balance to a lower-rate card, or one with a 0% introductory APR.
• You could also look into a debt consolidation loan.