Personal Finance
Debt Snowball
Definition
What is Debt Snowball?
A debt-repayment method prioritising the smallest balance first for motivational progress.
Example in practice
How This Looks in Practice
The borrower eliminates a ₦50,000 debt before larger balances.
Keep learning
Related Terms
Personal Finance
Savings
Money set aside rather than spent, often for emergencies or future goals.
Personal FinanceEmergency Fund
Liquid savings reserved for unexpected expenses or income disruption.
Personal FinanceNet Worth
Total assets minus total liabilities.
Retirement InvestingWithdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.