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Glossary Finance

Debt avalanche

The debt avalanche is a payoff strategy that puts all extra money on the debt with the highest interest rate first, which minimises total interest.

Last reviewed: 2026-10-03

In more detail

Compare the Debt snowball. In the guide's worked example the avalanche clears three debts in 27 months with $1,629.85 of interest. See How Debt Payoff Strategies Work.

Try these tools

Debt Payoff Calculator

Simulate paying off multiple debts at once with the snowball (smallest balance first) or avalanche (highest interest first) strategy.

See also

Glossary Debt snowball
The debt snowball is a payoff strategy that puts extra money on the smallest balance first, for quick wins.
Glossary APR
APR (annual percentage rate) is the yearly cost of borrowing, expressed as a percentage, that includes the interest rate plus certain fees.

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