Debt Snowball Calculator

The debt snowball method is a highly effective, behavior-driven financial strategy designed to eliminate consumer debt by prioritizing balances from smallest to largest, regardless of interest rates. By securing quick, psychological victories early in the repayment process, this approach builds the momentum necessary to tackle massive financial obligations over time. Understanding the mathematics and psychological mechanics behind a debt snowball calculation empowers individuals to construct a precise, actionable roadmap to total financial freedom.

What It Is and Why It Matters

The debt snowball is a debt-reduction strategy where a borrower pays off accounts in order of the smallest balance to the largest balance, while continuing to make the minimum required payments on all other debts. Once the smallest debt is completely paid off, the money that was previously directed toward that payment is rolled over into the payment for the next smallest debt. This process creates a "snowball effect"—as each debt is eliminated, the amount of money available to attack the next debt grows larger and more powerful. The primary problem this strategy solves is not a mathematical one, but a behavioral one. Human beings are heavily influenced by immediate feedback and tangible progress. When faced with crippling debt—often spanning tens of thousands of dollars across multiple credit cards, auto loans, and student loans—borrowers frequently experience paralysis, fatigue, and hopelessness.

Traditional mathematical logic dictates that paying off the highest interest rate debt first saves the most money. However, if that high-interest debt is a $25,000 student loan, a borrower might pay extra on it for three years without feeling any sense of accomplishment, leading them to abandon the effort entirely. The debt snowball method flips this paradigm by engineering quick, early wins. If a borrower has a $500 medical bill, a $3,000 credit card, and a $15,000 auto loan, the snowball method demands they attack the $500 bill first. Paying off that medical bill in just two months provides a massive psychological boost, proving to the borrower that their sacrifices are yielding real results. This method matters because it acknowledges that personal finance is 80% behavior and 20% head knowledge. A debt snowball calculator serves as the architectural blueprint for this psychological journey, allowing a borrower to input their exact numbers and see the specific month and year they will become entirely debt-free. It transforms abstract anxiety into a concrete, highly motivating timeline.

History and Origin

The concept of systematically paying down debt has existed since the invention of credit, but the specific, rigid methodology of the "debt snowball"—prioritizing the smallest balance first while ignoring interest rates—was popularized in the late 20th century. The most famous proponent of the debt snowball is personal finance author and radio host Dave Ramsey, who introduced the concept to the mainstream in his 1992 self-published book, Financial Peace, and later cemented it in his 2003 bestseller, The Total Money Makeover. Ramsey, who had personally experienced a devastating bankruptcy in the late 1980s after accumulating millions in short-term real estate debt, recognized that his failure was due to behavioral mistakes, not a lack of mathematical understanding. He began teaching the debt snowball method in church basements, arguing vehemently that if consumers were capable of strictly following math, they would not be in credit card debt in the first place.

While Ramsey brought the concept to the masses, the underlying mechanics of the debt snowball are deeply rooted in the academic field of behavioral economics. In the 1980s and 1990s, economists like Richard Thaler (who later won the Nobel Memorial Prize in Economic Sciences) began studying "mental accounting" and how human psychology routinely defies rational economic theory. The specific efficacy of the debt snowball was later rigorously tested and validated by academic institutions. In 2016, a seminal study published in the Journal of Consumer Research by researchers at Northwestern University's Kellogg School of Management analyzed the anonymous data of nearly 6,000 borrowers over 36 months. The researchers found that consumers who tackled small balances first were significantly more likely to eliminate their overall debt than those who tried to pay off high-interest, large-balance accounts first. The study concluded that the "proportion of the balance paid" heavily impacts a person's motivation; wiping out 100% of a $300 debt feels substantially more rewarding than wiping out 1% of a $30,000 debt. Thus, the debt snowball evolved from a piece of populist financial advice into a scientifically validated framework for behavioral modification.

Key Concepts and Terminology

To accurately execute a debt snowball strategy, a borrower must deeply understand the specific terminology that dictates the mathematics of lending and repayment.

Principal Balance

The principal is the actual amount of money currently owed on a debt, excluding future interest. If you borrow $10,000 to buy a car, your starting principal is $10,000. As you make payments, a portion goes toward the interest charged by the lender, and the remainder reduces the principal. The debt snowball strictly orders debts based on this exact principal balance, from smallest to largest.

Annual Percentage Rate (APR)

The APR represents the annualized cost of borrowing money, expressed as a percentage. It includes the interest rate and any associated fees. For example, a credit card might have an APR of 24.99%. In a pure debt snowball strategy, the APR is intentionally ignored when determining the order of debt payoff, though it remains a critical factor in calculating how much interest accrues each month and exactly when the debt will reach zero.

Minimum Payment

This is the absolute lowest amount a lender requires a borrower to pay each billing cycle to keep the account in good standing and avoid late fees. For credit cards, this is often calculated as a flat fee (e.g., $35) or a small percentage of the total balance (e.g., 2% of the principal), whichever is greater. In the debt snowball method, the borrower must maintain the minimum payment on every single debt except the one they are actively attacking.

Snowball Payment (Extra Margin)

The snowball payment is the discretionary income a borrower has freed up in their monthly budget to attack their debt. If a borrower's total minimum payments equal $500, and they have $800 available to pay toward debt, their snowball payment is the extra $300. This $300 is applied directly to the principal of the smallest debt.

Rollover Effect

This is the defining mechanic of the strategy. When the smallest debt is paid in full, the money that was being used to pay it (the original minimum payment plus the extra snowball payment) is "rolled over" and added to the minimum payment of the next smallest debt. This creates an ever-increasing monthly payment that accelerates the payoff of larger debts.

Amortization

Amortization is the mathematical process of paying off a debt over time through regular, equal payments. An amortization schedule shows exactly how much of each payment goes toward interest and how much goes toward principal. Debt snowball calculators dynamically recalculate amortization schedules for multiple loans simultaneously as extra payments are applied and rolled over.

How It Works — Step by Step

Executing a debt snowball requires strict adherence to a specific mathematical algorithm. To understand the mechanics, one must look at both the overarching steps and the underlying mathematical formulas that dictate loan amortization.

The Algorithm

Step 1: List all debts (excluding the primary mortgage) in ascending order from the smallest principal balance to the largest principal balance. Do not factor in the interest rate. Step 2: Commit to paying the absolute minimum required payment on every debt on the list. Step 3: Determine how much extra money can be squeezed from the monthly budget (the "snowball"). Step 4: Apply the minimum payment PLUS the entire extra snowball amount to the smallest debt on the list. Step 5: Once the smallest debt is paid off, take the entire amount you were paying on that debt and apply it to the minimum payment of the next smallest debt. Repeat until all debts are zero.

The Mathematics and Formulas

To calculate how a debt balance changes month to month, calculators use the standard compound interest formula for discrete monthly periods. The formula to find the interest charged in a single month is: Monthly Interest = Principal Balance × (APR / 12) The formula to find the new balance at the end of the month is: New Balance = Principal Balance + Monthly Interest - Total Monthly Payment

A Full Worked Example

Assume a borrower has $150 of extra room in their budget (the snowball) and three debts:

1. Medical Bill: $500 balance, 0% APR, $50 minimum payment.
2. Credit Card: $2,000 balance, 24% APR, $60 minimum payment.
3. Auto Loan: $10,000 balance, 6% APR, $200 minimum payment.

Month 1: The borrower pays the $60 minimum on the Credit Card and the $200 minimum on the Auto Loan. They attack the Medical Bill. Payment = $50 (minimum) + $150 (extra snowball) = $200. Medical Bill Math: $500 + $0 interest - $200 payment = $300 new balance. Credit Card Math: Monthly interest is $2,000 × (0.24 / 12) = $40. $2,000 + $40 interest - $60 payment = $1,980 new balance. Auto Loan Math: Monthly interest is $10,000 × (0.06 / 12) = $50. $10,000 + $50 interest - $200 payment = $9,850 new balance.

Month 2: The borrower repeats the process. Medical Bill Math: $300 + $0 interest - $200 payment = $100 new balance.

Month 3: The borrower only owes $100 on the Medical Bill. They pay the $100, completely eliminating Debt 1. They have $100 left over from their $200 dedicated amount for that debt. This $100 immediately rolls over to the Credit Card. Credit Card Math: Previous balance was roughly $1,939. The new payment is $60 (minimum) + $100 (rolled over) = $160.

Month 4 and Beyond: The Medical Bill is gone. The borrower now has $260 total to attack the Credit Card ($60 original minimum + $50 old medical minimum + $150 extra snowball). They will pay $260 every month toward the Credit Card until it is gone. Once the Credit Card hits zero, that entire $260 rolls over to the Auto Loan, meaning the borrower will start paying $460 per month ($200 auto minimum + $260 rolled over) toward the car until they are completely debt-free.

Types, Variations, and Methods

While the standard debt snowball is the most famous behavioral approach to debt payoff, the personal finance community has developed several variations to address different psychological needs and mathematical realities. Understanding these variations allows a borrower to choose the exact methodology that fits their personality and financial constraints.

The Standard Debt Snowball

As outlined above, this method strictly orders debts from smallest balance to largest balance. It completely ignores interest rates. The primary advantage is maximum psychological motivation through rapid, early victories. The primary disadvantage is that it is mathematically inefficient; leaving large, high-interest credit cards for last means the borrower will pay more in total interest over the life of the payoff journey compared to other methods.

The Debt Avalanche

The debt avalanche is the mathematical antithesis to the debt snowball. In this method, the borrower lists their debts in order of highest interest rate to lowest interest rate, regardless of the principal balance. The extra money is applied to the debt with the highest APR. Once that is paid off, the payment rolls over to the debt with the second-highest APR. The advantage of the avalanche method is that it saves the maximum amount of money on interest and results in the fastest possible payoff date—assuming the borrower never loses motivation. The disadvantage is that if the highest-interest debt is a massive $30,000 personal loan, the borrower might go years without crossing a single debt off their list, leading to severe burnout and abandonment of the plan.

The Debt Tsunami

Pioneered by personal finance writer Adam Baker, the debt tsunami orders debts based on the psychological and emotional stress they cause, rather than balance or interest rate. A borrower might prioritize a $4,000 loan from a family member over a $1,000 credit card because the family loan is causing relationship friction and immense anxiety. Once the most emotionally taxing debt is cleared, the borrower moves to the next most stressful debt. This method is highly subjective but extremely effective for individuals whose debt is tied to complex personal relationships or aggressive collection agencies.

The Debt Snowflake

The debt snowflake is not a standalone ordering system, but rather a micro-strategy used to accelerate any of the above methods. It involves taking tiny, irregular windfalls—such as saving $3 by skipping a coffee, earning $15 from selling an old shirt online, or getting a $50 cash back reward—and immediately applying those "snowflakes" to the current target debt. Over a month, dozens of micro-payments accumulate into a massive, principal-crushing payment, significantly speeding up the overall timeline calculated by a standard debt snowball trajectory.

Real-World Examples and Applications

To truly grasp the power of the debt snowball, one must observe how it transforms real-world financial disasters into manageable, finite timelines. Consider two distinct personas facing different types of debt profiles.

Scenario A: The Recent Graduate

Emily is a 24-year-old marketing coordinator earning $55,000 a year. After auditing her budget, she realizes she can dedicate an extra $250 a month toward her debt. Her debt profile is as follows:

1. Store Credit Card: $800 balance, 26% APR, $30 minimum payment.
2. Personal Bank Loan: $3,500 balance, 11% APR, $100 minimum payment.
3. Auto Loan: $12,000 balance, 7% APR, $250 minimum payment.
4. Student Loan: $28,000 balance, 5% APR, $300 minimum payment.

Using the debt snowball, Emily attacks the Store Credit Card first. She pays $280 a month ($30 minimum + $250 extra). In exactly 3 months, the store card is completely paid off. Emily experiences a surge of motivation. She now takes that $280 and rolls it over to the Personal Bank Loan, meaning she is paying $380 a month toward it. The $3,500 loan is wiped out in 10 months. Within 13 months, Emily has eliminated half of her individual creditors. She now takes the $380 and rolls it onto her Auto Loan, paying $630 a month. The car is paid off in 18 more months. Finally, she rolls that $630 onto her Student Loan, paying a massive $930 a month. What originally looked like a lifetime of debt is completely eradicated in just under 4.5 years.

Scenario B: The Overwhelmed Family

Mark and Sarah are a married couple in their 40s earning a combined $110,000. They have fallen into the trap of lifestyle creep and medical emergencies. They slash their lifestyle and find $600 a month in extra snowball money. Their debts are:

1. Medical Bill: $400 balance, 0% APR, $50 minimum.
2. Credit Card A: $4,500 balance, 22% APR, $120 minimum.
3. Credit Card B: $9,000 balance, 19% APR, $200 minimum.
4. Home Equity Line of Credit (HELOC): $18,000 balance, 9% APR, $150 minimum.

They attack the medical bill first with a $650 payment ($50 min + $600 extra) and destroy it in less than a month. Next month, they apply $770 ($120 min + $650 rollover) to Credit Card A. Despite the high 22% interest, the sheer force of a $770 monthly payment crushes the $4,500 balance in just 6 months. They then roll that $770 onto Credit Card B, creating a new payment of $970. The $9,000 balance is eradicated in 10 months. Finally, they attack the HELOC with an overwhelming $1,120 monthly payment. The entire $31,900 debt burden is completely wiped out in just 28 months, a feat that would have taken over 15 years if they had only made minimum payments.

Common Mistakes and Misconceptions

Despite its straightforward premise, the debt snowball method is frequently misunderstood and improperly executed. Beginners often fall into traps that derail their mathematical progress and destroy their psychological momentum.

The most catastrophic mistake is failing to maintain minimum payments on all other debts. Some borrowers mistakenly believe that "focusing on one debt" means they can temporarily pause payments on their larger loans to free up more cash. This results in devastating late fees, plummeting credit scores, and penalty APRs that can permanently cripple a financial profile. The debt snowball explicitly requires that every single account remains current and in good standing; only the discretionary extra income is targeted at the smallest debt.

Another pervasive misconception is that the debt snowball requires closing accounts the moment they reach a zero balance. While closing a credit card prevents a borrower from running up new debt on that specific account, it also immediately reduces their total available credit and decreases the average age of their credit history. Both of these actions can cause a severe, albeit temporary, drop in their FICO credit score. Unless a credit card has an exorbitant annual fee or the borrower has a severe, uncontrollable spending addiction, it is generally better to leave the account open with a zero balance while continuing the snowball on the remaining debts.

Furthermore, many beginners make the mistake of starting a debt snowball without first establishing a starter emergency fund. If a borrower uses every single spare dollar to pay down a credit card, and the next week their car's transmission fails, they have no cash to pay the mechanic. They are forced to put the repair right back onto the credit card they just paid off. This creates a devastating psychological blow that often causes people to quit the program entirely. Best practice dictates saving a small cash buffer—typically $1,000 to $2,000—before making the very first extra snowball payment.

Best Practices and Expert Strategies

To maximize the efficiency of a debt snowball calculation, financial professionals and debt-reduction experts recommend a suite of aggressive best practices that go beyond simple mathematics.

First, experts mandate the implementation of a strict, zero-based monthly budget. A zero-based budget means that every single dollar of income is assigned a specific job before the month begins (Income - Expenses = Zero). Without a rigid budget, the "extra snowball amount" is merely a guess, and borrowers frequently overspend on discretionary categories like dining out or entertainment. By tracking expenses meticulously, borrowers can artificially inflate their snowball payment. A $200 snowball can easily become a $500 snowball when hidden subscription services are canceled and grocery spending is optimized.

Second, automation is a critical strategy for success. Human willpower is a finite resource that depletes over time. If a borrower has to manually log into a banking portal every month to transfer their $450 snowball payment, they will eventually find an excuse to skip a month. Experts recommend setting up automatic transfers scheduled for the exact day the borrower's paycheck clears. By removing the physical act of paying the debt, the borrower removes the temptation to spend that money elsewhere. The math works seamlessly in the background.

Third, experts advise temporarily halting all retirement investments—including employer 401(k) matches—while executing the debt snowball. This is highly controversial in traditional finance circles, as passing up an employer match is mathematically equivalent to turning down free money. However, the expert rationale is twofold: first, the goal is to free up maximum monthly cash flow to create the largest possible snowball, which speeds up the timeline significantly. Second, the intense, temporary pain of missing out on retirement contributions acts as a powerful behavioral motivator to finish the debt payoff as fast as humanly possible, usually within 18 to 24 months, after which aggressive investing resumes.

Finally, any unexpected windfalls must bypass the budget entirely and go directly to the target debt. If a borrower receives a $2,500 tax refund, a $500 holiday bonus, or $300 from selling a television, that money is treated as a massive, one-time snowflake. Inputting a sudden $2,500 principal reduction into a debt snowball calculator will dramatically shift the amortization schedule, often shaving months off the final debt-free date and saving hundreds in interest.

Edge Cases, Limitations, and Pitfalls

While the debt snowball is broadly applicable, it breaks down or requires significant modification when confronted with specific financial edge cases and extreme mathematical limitations.

One major pitfall is the presence of predatory payday loans or title loans. These financial products often carry astronomical APRs ranging from 300% to 600%. If a borrower has a $2,000 payday loan and a $500 medical bill, the standard debt snowball dictates paying the medical bill first. However, at 400% APR, the payday loan is compounding so violently that the borrower's balance will explode before they ever finish the medical bill. In these extreme edge cases, the strict balance-ordering rule must be broken; loans with predatory, triple-digit interest rates must be treated as absolute emergencies and eradicated first, regardless of their principal size.

Another limitation arises when dealing with promotional 0% APR balances that are nearing their expiration date. Many balance transfer credit cards offer 0% interest for 12 to 18 months, after which deferred interest may be retroactively applied, or the rate jumps to 29.99%. If a borrower has a $4,000 promotional balance expiring in three months, and a $2,000 standard credit card balance, strictly following the snowball would mean attacking the $2,000 card. Doing so might cause them to miss the promotional window on the $4,000 card, triggering massive retroactive interest penalties. A savvy borrower must manually override the snowball order to clear time-sensitive promotional debts before penalties trigger.

Psychological fatigue is a significant limitation when the smallest debt on the list is already massive. If a borrower's absolute smallest debt is a $35,000 student loan, the core mechanic of the debt snowball—the quick, early win—is completely neutralized. It may take two years of aggressive payments just to cross off the very first item on the list. In these scenarios, the debt snowball offers no behavioral advantage over the debt avalanche, and the borrower must rely entirely on deep intrinsic discipline rather than the dopamine hits of closing small accounts.

Industry Standards and Benchmarks

When evaluating the severity of a debt load and the progress of a snowball strategy, financial professionals rely on established industry benchmarks to determine a borrower's overall financial health.

The most critical benchmark is the Debt-to-Income (DTI) ratio. This is calculated by dividing total monthly debt payments by gross monthly income. According to the Consumer Financial Protection Bureau (CFPB) and standard mortgage underwriting guidelines, a healthy DTI ratio is below 36%, with no more than 28% of that going toward housing costs. If a borrower's DTI exceeds 43%, they are considered to be in high financial distress and are generally disqualified from taking on new qualified mortgages. A primary goal of the debt snowball is to rapidly drive the non-housing DTI down to 0%.

Credit utilization is another vital standard. This metric compares the total amount of revolving credit a borrower is currently using against their total available credit limits. The industry standard dictated by FICO is that credit utilization should never exceed 30% on any individual card or across the entire credit profile; however, individuals with the highest credit scores (800+) typically maintain a utilization rate below 10%. As a borrower executes their debt snowball, their utilization rate naturally plummets, which is why credit scores often skyrocket during the final stages of the payoff process.

In terms of timelines, the industry benchmark for a successful, aggressive debt snowball (excluding mortgages) is 18 to 24 months. While this varies wildly based on income and total debt, financial coaching organizations generally find that if a projected payoff date extends beyond 36 months, the borrower's risk of abandoning the program increases exponentially. If a calculator projects a 5-year payoff, experts strongly advise the borrower to radically alter their income (taking a second job) or liquidate assets (selling a financed car) to bring the timeline back within the 24-month benchmark.

Comparisons with Alternatives

The debt snowball is not the only methodology for eliminating liabilities, and comparing it against alternatives highlights exactly when it is the optimal choice and when it is mathematically inferior.

Debt Snowball vs. Debt Avalanche: As previously noted, the avalanche method targets the highest interest rate first. Mathematically, the avalanche is undeniably superior. If a borrower has $50,000 of debt spread across various rates, the avalanche method will always cost less in total interest and result in an earlier debt-free date than the snowball method. However, studies consistently show that the snowball method has a higher completion rate. The avalanche is best for highly analytical, disciplined individuals who are motivated by spreadsheets; the snowball is best for the vast majority of the population who need emotional reinforcement to stay on track.

Debt Snowball vs. Debt Consolidation: Debt consolidation involves taking out a single, large new loan at a lower interest rate to pay off multiple smaller, high-interest debts. The appeal is clear: it simplifies five monthly payments into one, and the lower APR saves money. However, consolidation treats the symptom, not the disease. The borrower has not actually paid off any debt; they have merely moved it from one ledger to another. Statistically, a significant percentage of borrowers who consolidate their credit cards end up running the balances back up on the original cards because they never changed their underlying spending behaviors. The debt snowball, while harder and slower initially, forces the borrower to modify their lifestyle, ensuring the debt stays gone forever.

Debt Snowball vs. Bankruptcy: In extreme cases, a borrower may consider Chapter 7 or Chapter 13 bankruptcy rather than attempting a snowball. Bankruptcy is a legal process that can discharge unsecured debts entirely, offering a true "clean slate." If a debt snowball calculator projects that it will take more than 7 to 10 years to pay off unsecured debt even with extreme budgeting, bankruptcy may be the more viable option. However, bankruptcy devastates a credit profile for 7 to 10 years, making it incredibly difficult to rent an apartment, buy a car, or even secure certain types of employment. The debt snowball preserves and eventually enhances the credit score, making it the vastly preferred alternative for anyone whose debt can mathematically be cleared within 3 to 5 years.

Frequently Asked Questions

Should I include my primary mortgage in the debt snowball? No, your primary mortgage should not be included in your initial debt snowball list. The debt snowball is specifically designed to rapidly eliminate consumer debt, such as credit cards, personal loans, medical bills, and auto loans. Mortgages are typically massive, long-term debts with relatively low interest rates that are tied to an appreciating asset. Including a $300,000 mortgage in your snowball would completely halt your psychological momentum. Once all consumer debt is paid off, and a fully-funded emergency fund is established, you can then direct extra payments toward your mortgage as a separate, long-term wealth-building phase.

What happens if two debts have the exact same principal balance? If you have two debts with the exact same balance—for example, two credit cards that both have exactly $1,500 remaining—you should break the tie by looking at the interest rates. Attack the debt with the higher Annual Percentage Rate (APR) first. This minor adjustment allows you to save a small amount of money on interest without sacrificing the behavioral momentum of the snowball method. If the interest rates are also identical, simply pick the debt that causes you the most emotional stress or is held by the most annoying creditor, and attack it aggressively.

Do I stop contributing to my 401(k) or IRA while doing the debt snowball? This is a highly debated topic among financial professionals. The strict, traditional debt snowball methodology dictates that you should temporarily halt all retirement contributions, including employer matches, to free up every possible dollar for debt elimination. The reasoning is that the intensity required to finish the snowball quickly is diluted if you are still investing. However, many modern financial advisors argue that giving up a 100% employer match is mathematically disastrous. A moderate approach is to contribute only exactly enough to get the maximum employer match, and channel all remaining discretionary income into the debt snowball.

How do I handle a debt with a 0% promotional interest rate? If the 0% promotional period will outlast your projected payoff date for that specific debt, treat it exactly like any other debt and place it in its normal order based on the principal balance. However, if the 0% period is going to expire soon, and expiring will trigger retroactive deferred interest (common in retail store cards), you must manually prioritize that debt. Calculate exactly how much you need to pay each month to clear the balance before the expiration date, make that your new "minimum" payment for that card, and continue snowballing your other debts around it.

What should I do if I have a major financial emergency while paying off debt? If a true emergency strikes—such as a job loss, a major medical event, or a critical home repair—you must immediately pause the debt snowball. Revert to making only the minimum required payments on all your debts. Take the extra money you were using for the snowball and stockpile it in your checking account to cash-flow the emergency. Do not take on new debt to fund the emergency if you can avoid it. Once the crisis has passed and your income stabilizes, you simply restart the snowball exactly where you left off, utilizing the same mathematical order as before.

Does the debt snowball method ruin my credit score? No, the debt snowball method will ultimately improve your credit score significantly, though you may see minor fluctuations along the way. Your credit score is heavily influenced by your credit utilization ratio (how much debt you have compared to your limits) and your payment history. Because the snowball method requires you to make all minimum payments on time, your payment history remains flawless. As you rapidly pay down balances, your utilization ratio plummets, which drives your FICO score higher. The only way the snowball harms your score is if you mistakenly stop paying minimums on your larger debts, or if you immediately close every credit card the moment it hits a zero balance.