Definition
Debt Avalanche
A payoff strategy that targets your highest-interest debt first to save the most money.
The debt avalanche has you pay minimums on all debts and put every extra dollar toward the one with the highest interest rate. Mathematically it is optimal: you pay the least total interest and get out of debt soonest.
It saves more than the snowball but delivers slower early wins, so it suits people motivated by numbers rather than momentum.