Guides / Payoff plans
The debt avalanche method
Highest interest rate first, to pay the least interest.
With the debt avalanche, you pay minimums on everything and put every extra dollar on the debt with the highest interest rate. Mathematically, it costs the least.
How
- List debts from highest interest rate to lowest
- Pay the minimum on every debt
- Put all extra money on the highest-rate debt
- When it's gone, roll its payment to the next highest rate
- Repeat
Snowball or avalanche?
The best plan is the one you'll stick with. Our calculator shows both, side by side, with your numbers.
General educational information, not financial or legal advice. Nickel Keepers isn't paid by any lender, card company or debt relief company.