This debt elimination technique pays off personal debt from the highest interest rate to the lowest.
All personal debt is organized from the highest interest rate to the lowest. Once you have this list, these are the steps.
Avalanche Debt Method Steps:
1.- Budget And Make Minimum Payments On All Debts.
2.- Focus on Extra Money To Pay Off The Debt Balance With The Highest Interest Rate.
3.- Once Highest Interest Rate Debt Is Paid Off, Target The Next.
Continue to pay minimum payments on all debts and target the highest interest rate debt until all debt is eliminated.
Notes.
The Avalanche Debt Method seems to suit many people in eliminating debt the fastest. Mathematically it looks like it since you are targeting the debt that is getting you into debt more the fastest.
The Avalanche Debt Method is much different than the Debt Snowball Method since the Debt Snowball targets the debt with the lowest balance.
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