The debt avalanche method pays extra toward the debt with the highest interest rate first while maintaining minimum payments on other debts.
After the highest-rate balance is eliminated, the borrower redirects that payment toward the next-highest rate. This process continues until all targeted debts are repaid. Because expensive interest is addressed first, the method can reduce total interest compared with strategies that prioritize balances for other reasons, assuming the borrower follows the plan consistently.
The debt avalanche differs from the debt snowball method, which targets the smallest balance first regardless of interest rate. Snowball users may gain motivational wins sooner, while avalanche users focus on mathematical interest savings.
Both approaches require keeping accounts current and avoiding new unaffordable borrowing. Actual results depend on balances, annual percentage rates, fees, minimum-payment rules, and whether payments are applied as intended by each creditor.