Debt avalanche

Paying off debts from the highest interest rate to the lowest, which saves the most money.

With the avalanche method, you pay the minimum on every debt and put any extra money toward the debt with the highest APR. When it's paid off, its payment moves to the next highest rate.

Because it attacks the most expensive debt first, the avalanche method costs the least in interest and is usually the fastest way out. The trade-off is that your first payoff can take a while if that debt has a large balance.

Try it with your own numbers in our debt payoff calculator.