The avalanche method is a debt repayment strategy that involves focusing on paying off the debt with the highest interest rate first, while making minimum payments on the other debts. Once the debt with the highest interest rate is paid off, you move on to the debt with the next highest interest rate, and so on. This method can help you save money on interest and pay off your debts faster.
The avalanche method is most effective if you have multiple debts with high interest rates. It can also be helpful if you have a limited amount of money to put towards debt repayment each month. However, it is important to note that the avalanche method can be more difficult to stick to than other debt repayment methods, such as the snowball method. This is because you may have to make larger payments on your debt with the highest interest rate, which can be difficult if you are on a tight budget.