Definition

Debt avalanche

The debt avalanche is a repayment method where you list debts by interest rate and direct any spare money at the highest-rate one first, paying minimums on the rest. Once that is cleared you move to the next highest rate.

It usually costs the least in total interest, though the first visible win can take a while to arrive. The debt snowball attacks the smallest balance first instead, which feels faster but often costs more overall.

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