Debt Avalanche Method
Lending & MortgagesA debt repayment strategy that prioritizes paying off the highest-interest debt first to minimize total interest paid.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding debt avalanche method helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how debt avalanche method impacts your specific situation.