Debt Avalanche Calculator
High-Interest Payoff Plan
Frequently Asked Questions
- Debt avalanche means you cover every required minimum payment, then send the extra cash to the debt with the highest APR. It is a math-first payoff strategy: high-rate balances create the most interest drag, so attacking them first usually lowers total interest.
- The avalanche only works after required minimums are covered. The U.S. CFPB minimum-payment explainer notes that paying only the minimum can take years, while paying more each month reduces interest over time.
- That means the modeled payments do not overcome interest growth within the safety window. The U.S. CFPB recommends acting quickly, contacting the card company if you cannot pay the minimum, and considering nonprofit credit counseling.
- Avalanche is usually cheaper because it targets the highest APR first. Snowball can feel better emotionally because it clears small balances first. A useful compromise is to use avalanche unless a small debt creates a motivational win without adding much interest cost.
- If minimum payments are hard to keep up with, talk to a reputable nonprofit counselor before paying a debt-relief company. The CFPB credit counseling guide explains how counselors can help with budgets and debt-management plans, while the FTC debt guide warns about debt-relief scams.