What Is Debt Avalanche Method?
From the SB Advisors Academy money glossary · Free, no signup
A debt payoff strategy where you pay minimums on all debts and direct all extra money to the highest interest rate debt first, minimizing total interest paid.
A worked example
You have a 24% APR card and a 14% APR card. Avalanche says attack the 24% card aggressively first because it costs the most.
Category
Part of the "Credit and Debt" group in the money glossary.