The debt snowball method is a debt repayment strategy where individuals focus on paying off their smallest debts first. By making minimum payments on larger debts while directing extra funds toward the smallest debt, they can quickly eliminate it. This creates a sense of accomplishment and motivation to tackle larger debts. Once the smallest debt is paid off, the individual moves to the next smallest debt, using the money previously allocated to the first debt. This process continues, creating a "snowball" effect as the individual gains momentum and confidence in managing their finances, ultimately leading to debt freedom.