The debt snowball, worked out: three debts, one extra payment

Paying off several debts at once feels messy because every balance, rate, and minimum payment pulls in a different direction. The snowball method cuts through that noise with one rule: pay the minimum on everything, then throw every extra dollar at the smallest balance first. When that one is gone, roll its payment into the next smallest.

Here is the whole idea worked out with example numbers. These are template example rows, not real bills and not anyone's actual debts.

Debt table: Store card, Balance $400, Minimum payment $25, Order 1st; Credit card, Balance $1,200, Minimum payment $40, Order 2nd; Personal loan, Balance $3,500, Minimum payment $90, Order 3rd.

Total minimums: $25 + $40 + $90 = $155 a month.

Now add an extra $50 a month on top of the minimums. That $50 goes entirely to the store card first, so it gets $25 + $50 = $75 a month. At that rate, a $400 balance clears in about 6 months (400 / 75 = 5.3, rounded up to allow for interest in a real account — this example ignores interest to keep the arithmetic visible).

When the store card is gone, the snowball grows: the $75 that was going to it rolls into the credit card, which then gets $40 + $75 = $115 a month. A $1,200 balance at $115 a month clears in about 11 months. Then that $115 rolls into the personal loan, which gets $90 + $115 = $205 a month.

Three things this example shows, and one thing it does not:

1. The monthly total never changes. You pay $205 a month from start to finish ($155 minimums + $50 extra); only where the money goes changes.
2. The first win comes fast on purpose. Clearing the smallest balance first is a behavior trick, not a math trick — the cheapest-interest order would be different, and for some people that order saves more money overall.
3. A spreadsheet does the reordering for you. Sort by balance ascending, add one column for "extra payment goes here," and the next target updates itself when a balance hits zero.

What it does not show: real interest, fees, or late charges. A real payoff plan needs the actual APR on each debt. If a rate is punishing, paying that debt first can be the better call even though it breaks the snowball order. The method is a starting order, not a promise.

If you want to try the arithmetic on your own numbers, the free sample sheet below has the budget table, and the full template adds the debt snowball sheet with automatic ranking and a 12-month payoff demo.

Free sample: https://ko-fi.com/s/cfb94374dd
Full template ($0.99): https://ko-fi.com/s/3ba2ef96cd

This post explains a method and shows example arithmetic. It is not a promise that any debt will clear on a given date, and it is not financial advice.