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Debt Elimination

Smallest Balance First

Pay minimums on all debts. Throw every extra dollar at your smallest balance until it's gone. Then roll that payment to the next smallest. Repeat until debt-free.

Difficulty: ⭐ Beginner Category: Debt Elimination
Best for

People who need motivation to stay consistent. Quick wins build momentum.

How to do it — step by step
1

List all debts from smallest to largest balance.

2

Pay the minimum on every debt except the smallest.

3

Throw every extra dollar at the smallest debt.

4

When it's paid off, roll that full payment into the next debt.

5

Repeat until all debts are eliminated.

Advantages & considerations
Advantages
  • Fast early wins keep you motivated
  • Simple and easy to follow
  • High real-world completion rate
Worth Knowing
  • May pay more total interest than other methods
  • Ignores interest rates entirely
Related systems
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