What is the primary goal behind paying off debt using the snowball method?

The primary goal behind paying off debt using the snowball method is to achieve motivation and momentum by paying off smaller debts first. This strategy is built on the psychological principle that as individuals eliminate smaller debts, they gain a sense of accomplishment and motivation to tackle larger debts. By starting with debts that are easier to manage and completely pay off, you create a positive reinforcement loop. Each paid-off debt provides a sense of victory that fuels further progress, encouraging continued efforts to address remaining debts, regardless of their interest rates or sizes.

This method prioritizes emotional satisfaction and personal empowerment over simply minimizing interest payments or addressing larger debts first. While some might assume tackling the highest-interest debts would save more money, the snowball method emphasizes gradual progress and psychological benefits, which can lead to better long-term adherence to debt repayment plans.