==Debt-Snowball Method==
Ramsey is a proponent of the "[[debt-snowball method]]" of debt reduction.
Under this method, persons who have numerous creditors are encouraged to concentrate on reducing the debts with the smallest ''balance'' (as opposed to the smallest ''interest rate''), then when a debt is paid off, to take the money from that debt and apply it to the next smallest debt. The methodology works as much on psychology as on finance; by seeing debts paid off, it provides encouragement to continue the process.