How to use it
- Use the formula below with your own figures.
The formula
Pay highest-rate debts first to save interest.
Worked example
Attacking a 24% card before a 6% loan minimizes total interest.
Frequently asked questions
Why avalanche?
It mathematically minimizes interest paid.
Downside?
Progress can feel slower if the big debt is high-rate.
Tips
- 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.
Key terms
- Minimum payment
- The smallest amount due each period.
- Utilization
- Balances divided by credit limits.
- Consolidation
- Combining debts into one loan.