What does this tool do?
The avalanche method puts every spare dollar toward the debt with the highest APR, then rolls that payment to the next debt. It usually minimizes total interest, though it can take longer to see an account close.
The Formula
Each month: pay minimums, then send the extra to the highest-APR balanceFrequently Asked Questions
Avalanche or snowball?
Avalanche targets interest, snowball targets quick wins. The difference in total interest is often modest; pick the method you will stick with.
What if I cannot pay the minimums?
Contact each lender before missing a payment. This model assumes minimums are always paid.