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Avalanche method pays debt with highest interest rate first (mathematically optimal) while minimum-paying others.

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  1. 1Input all debts with balances and rates
  2. 2Order by interest rate (highest first)
  3. 3Calculate payoff timeline and total interest

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
Credit card 18%, student loan 4%, car 5%
ଫଳ
Pay credit card first, saves ~$3,000 vs. snowball method
Interest savings significant

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

  • Not accounting for minimum payments
  • Neglecting new charges during payoff

ବାରମ୍ବାର ଜିଜ୍ଞାସା

Vs. snowball method?

Avalanche saves most money; snowball provides psychological wins (small balances first).

ସେଟିଂ