Avalanche method

The avalanche method targets the debt with the highest interest rate first. Once it is cleared, the freed-up payment moves to the next highest-rate debt.

This approach minimises the total interest paid and usually clears debt fastest in pure mathematical terms. The downside is that the first win can take a long time if the highest-rate debt is also large.

It suits people who can stay motivated without frequent small victories. Our calculator lets you compare both methods side by side.