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Debt Avalanche

Orders debts by interest rate so the most expensive is cleared first.

Interactive inputs coming — use the formula and example below.

Rechenbeispiel

Attacking a 24% card before a 6% loan minimizes total interest.

So funktioniert's

  • Use the formula below with your own figures.

Die Formel

Pay highest-rate debts first to save interest.

Rechenbeispiel

Attacking a 24% card before a 6% loan minimizes total interest.

Häufige Fragen

Why avalanche?

It mathematically minimizes interest paid.

Downside?

Progress can feel slower if the big debt is high-rate.

Tipps

  • Pay more than the minimum — it changes payoff dramatically.
  • Attack the highest-rate balance first to save the most.
  • Stop adding new charges while you pay debt down.

Begriffe

Minimum payment
The smallest amount due each period.
Utilization
Balances divided by credit limits.
Consolidation
Combining debts into one loan.