◈ GLOSSARY · PERSONAL FINANCE
Debt Avalanche.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
A debt-payoff method that targets the highest interest rate first while paying minimums on everything else. It saves the most money in total interest, but the first balance can take a while to disappear, so it requires more discipline than the snowball. Best for people who are motivated by numbers, not by quick wins.
◈ IN PRACTICE
Example
Debts of $800 medical at 0%, $4,500 card at 22%, and $12,000 car at 6%: pay minimums on the medical and car, throw every extra dollar at the 22% card first because each $1 paid there saves 22 cents a year.
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