How Does Debt Avalanche Work?
Debt Avalanche is a debt repayment strategy that involves you paying off your balances with the highest interest rates first. This strategy saves you money and time in the long run. Because interest rates eat at your pockets, the sooner you can get rid of debts that have high interest rates the better.
It also saves you time. When you don’t pay off your high interest debts first, they will continue to accrue and compound interest, increasing faster than your lower interest debts would in the same amount of time.