Q: Today’s question comes from Chris. She asks: “What is the ‘avalanche’ method for paying off debt?”
A: If you're looking at debt repayment, you have several strategies, with the avalanche method being a standout choice. It aims to clear your debt more quickly while minimizing overall costs.
This approach focuses on paying off debts starting with the highest interest rate. By eliminating the most costly debts first, you reduce the total interest paid over time.
Using the avalanche method, you'll make minimum payments on all your debts, directing any additional funds to the debt with the highest interest rate. After that debt is settled, shift your attention to the next highest interest debt, applying any extra cash until all debts are cleared. Repeat this process until you're entirely debt-free.
