What is the debt avalanche method?

The debt avalanche method pays minimums on all debts, then puts every extra dollar toward the highest-interest debt first. This minimizes total interest paid and is mathematically optimal. The alternative, the debt snowball method, targets the smallest balance first for psychological wins.

How much extra payment should I make to pay off debt faster?

Even $50–$100 extra per month can cut years off a credit card balance. On a $5,000 credit card at 20% APR with a $150 minimum payment, adding $100/month saves over 3 years and $2,000 in interest. Use this calculator to see the exact impact of any extra payment amount.