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A payoff strategy that targets the highest-interest debt first.
With the debt avalanche, you make minimum payments on everything and throw every extra dollar at the debt with the highest interest rate, then move to the next highest. It minimizes total interest paid and is mathematically the cheapest method. It requires patience when the highest-rate balance is also large.
Paying off a 24% credit card before a 6% student loan follows the avalanche method.
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