Avalanche method
Debt avalanche calculator
The debt avalanche method sends extra money to the highest APR debt first while minimum payments continue on all other debts.
| Strength | Tradeoff | Compare against |
|---|---|---|
| Interest sensitive | May delay first payoff | Snowball |
| Clear rule | May feel less motivating | Balanced |
What to know
What it prioritizes
Avalanche focuses on reducing interest cost. It is often strongest when one debt has a much higher APR than the rest.
Where it can feel slower
If the highest-APR debt has a large balance, the first visible payoff can take longer than a snowball plan.
Why comparison still matters
The highest APR is important, but payoff timing, minimum payments, and available extra payment can change the total plan outcome.
FAQ
Should I always pay the highest APR debt first?
Often it is a strong option, but it should still be compared against payoff time, cash flow, and your ability to stay consistent.
Does avalanche require extra money?
It works best when you can pay minimums on all debts and put some extra amount toward the first target.
Related reading
Make it personal
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