Debt Avalanche Method
Pay the highest interest rate first to pay the least total interest.
How it works
The debt avalanche method targets the debt with the highest APR first, while paying minimums on the rest. Once the most expensive debt is gone, you move to the next-highest rate.
Because you are always attacking the debt that costs you the most, this method is mathematically guaranteed to pay the least total interest of any payoff order.
The trade-off is motivation: if your highest-rate debt also has a large balance, it can take a while before you see your first debt fully disappear.
Pros and cons
Pros
- Pays the least total interest
- Fastest payoff when rates vary widely
- Optimal in pure dollar terms
Cons
- First win can take longer (harder to stay motivated)
- Requires discipline without early payoffs
Who it's best for
The Debt Avalanche is best for disciplined planners who want to minimize the total dollars they pay and are comfortable waiting for the first payoff.
The only way to know if this is the fastest, cheapest plan for your debts is to run the numbers. The calculator compares this method against five others on your actual balances and rates.
Compare other methods
Debt Snowball
Pay the smallest balance first to build unstoppable momentum.
Smart Cascade
Free up cash flow fastest by blending payoff speed with interest.
Cash Flow Index
Clear the debts that tie up the most cash per dollar owed.
Highest Payment
Eliminate your biggest required payment first for instant relief.
Interest Cost
Stop the biggest dollar leak first (balance × APR).