The debt avalanche method: crush debt & build wealth faster

Debt can feel like a never-ending burden, but not all debt repayment strategies are created equal. If you want to eliminate debt faster while paying the least amount of interest, the debt avalanche method is the smartest way to do it.

Unlike other approaches, this strategy focuses on interest rates rather than balance size – ensuring you pay off debt efficiently while keeping more money in your pocket.

How the debt avalanche method works

• List all debts – Rank them from the highest to the lowest interest rate (credit cards, loans, etc.).
• Pay the minimum on all debts – this prevents penalties and keeps accounts in good standing.
• Target the highest-interest debt – allocate extra funds toward the debt with the highest rate.
• Eliminate & roll payments over – once a debt is cleared, apply its payment to the next highest-interest debt.
• Repeat until debt-free – continue the process until every debt is paid off.
• This method ensures that you attack the most expensive debt first, minimising the total interest paid overtime.

Why the debt avalanche method builds wealth faster

• Minimises interest payments
  High-interest debt (like credit cards) can snowball quickly, making repayment feel impossible. By eliminating the highest-interest debt first, you pay less over time and get out of debt faster.
• Frees up cash flow
  Once a debt is gone, you redirect that money toward other financial goals—investments, savings, or even starting a business.
• Accelerates financial freedom
  The sooner you eliminate debt; the sooner you stop sending money to lenders and start building your wealth instead.
• Boosts credit score
  Lower balances improve your credit utilisation, making you a stronger borrower with access to lower interest rates on future loans.
• Increases investment potential
  Every dollar saved on interest is a dollar that can be invested into assets like stocks, real estate, or retirement accounts – compounding wealth over time.

Why it works better than other debt payoff strategies

Many people use the debt snowball method, which focuses on paying off small debts first for motivation. While this can provide quick wins, it’s not the most cost-effective approach – you end up paying more interest in the long run.

The debt avalanche method, on the other hand, prioritises math over emotion, ensuring you pay the least amount of interest while becoming debt-free as fast as possible.
Ready to take control of your finances?

Start today by listing your debts, finding the highest interest rate, and attacking it with everything you’ve got. The faster you knock out high-interest debt, the faster you can shift from paying lenders to building wealth for yourself.

Want to optimise your financial future? Plan and start your debt avalanche today!