Thus in 17 months the person has repaid four loans, with two of them being paid in five months and three within one year. Effectiveness In situations where one debt has both a higher interest rate and higher balance than another debt, the debt-snowball method prioritizes the smaller debt even though paying the larger, higher-interest debt would be more cost-effective. Several writers and researchers have considered this contradiction between the method and a strictly mathematical approach. In a 2012 study by Northwestern’s Kellogg School of Management, researchers found that "consumers who tackle small balances first are likelier to eliminate their overall debt" than trying to pay off high interest rate balances first. A 2016 study in Harvard Business Review came to a similar conclusion: Author and radio host Dave Ramsey, a proponent of the debt-snowball method, concedes that an analysis of math and interest leans toward paying the highest interest debt first. However, based on his experience, Ramsey states that personal finance is "20 percent head knowledge and 80 percent behavior" and he argues that people trying to reduce debt need "quick wins" (i.e., paying off the smallest debt) in order to remain motivated toward debt reduction. Research by Moty Amar and colleagues agreed that debtors are inclined to pay small debts first, which they attributed to "debt account aversion", the desire to reduce the number of outstanding debts regardless of balance or interest expense. However, they also found that when debtors are restricted from fully paying debts and are shown the interest that will accrue as a result of their choice, they make the mathematically optimal decision. A survey conducted by Credello in 2022 found that roughly 9/10 people (88%) who tried debt snowball, found it very effective DIY debt payoff method. The survey also uncovered that none of the respondents who tried debt snowball found it ineffective. See also Personal finance Alternative financial service References Debt