# Debt Avalanche

*Everyday Money — Finicade finance glossary*

The debt avalanche pays off your highest-interest debt first while making minimums on everything else — the cheapest possible route out of debt. On a typical mix of a 24% credit card, a 9% personal loan and a 5% car loan, the avalanche can save hundreds to thousands versus the snowball. Its weakness is motivational: if the highest-rate debt is also the biggest, you can grind for a year with nothing visibly cleared. Choose avalanche if you trust your own consistency, snowball if you don't.

**Also known as:** avalanche method, highest interest first

**Related terms:** [Debt Snowball](https://finicade.com/glossary/debt-snowball), [Debt](https://finicade.com/glossary/debt), [Interest Rate](https://finicade.com/glossary/interest-rate), [Credit Card](https://finicade.com/glossary/credit-card)

Source: https://finicade.com/glossary/debt-avalanche