Welcome to the debt avalanche method! While debt snowball focuses on psychology, debt avalanche targets pure mathematics to save you the most money.
This method prioritizes highest interest rate debts first, minimizing total interest paid over time.
Engagement Message
Would you prioritize minimizing the total interest?
Here's how debt avalanche works: list all debts from highest to lowest interest rate, ignoring balances completely. Pay minimums on everything, then attack the highest rate debt first.
Once eliminated, roll that payment to the next highest rate.
Engagement Message
What's your highest interest rate debt right now?
The math is compelling: higher interest rates cost more money daily. A 24% credit card charges $200 yearly on every $1,000 balance, while a 6% loan only charges $60.
Attacking high rates first dramatically reduces total interest paid.
Engagement Message
Roughly how much interest could you skip by clearing your highest-rate debt first?
Example: Tom has $500 at 28%, $3,000 at 18%, and $8,000 at 6%. Debt avalanche targets the 28% debt first, then 18%, finally 6%.
This saves hundreds compared to paying lowest balances first.
Engagement Message
Which debt in this example costs Tom the most per dollar each year?
The challenge: debt avalanche requires patience and discipline. Your first target might be a large balance that takes months to eliminate.
No quick psychological wins means some people lose motivation and quit entirely.
Engagement Message
Are you the type who stays motivated by long-term math or needs frequent victories?
Choose debt avalanche if you're disciplined, mathematically motivated, and have mostly similar debt balances. It's optimal when interest rate differences are significant.
