Compare a debt avalanche plan
Copy balances, APRs and minimum monthly payments from your statements. The model pays every active minimum first, then assigns the remaining fixed monthly budget to the highest APR. Equal-rate debts use the smaller starting balance first. Money left after clearing a balance moves to the next account in that month.
Higher-rate repayment can reduce interest under these assumptions. The comparison uses the same balances, rates and monthly budget for both methods. Treat its figures as estimates: changing rates, daily interest, fees and lender payment rules are not modeled. Check the monthly schedule and continue meeting your actual statement requirements.
Frequently asked questions
How does the avalanche method work?
Pay the entered minimum on every active debt, then send the rest of a fixed monthly budget to the highest APR. Equal APRs use the smaller starting balance first.
Does avalanche always guarantee the earliest payoff?
The comparison uses fixed rates and the same monthly budget. Fees, promotional terms, penalties and changing minimum payments can change real results.
What does the minimum-only comparison assume?
Each debt keeps its entered minimum payment until repaid. Payments stop when an account closes; nothing rolls over. Actual lender minimums may change.