Ask Jean: "What Is The 'Avalanche' Method For Paying Off Debt?"

Saving money on ask jean what avalanche does not have to be complicated. We rounded up the essentials so you can spend less and skip the guesswork.

Key Takeaways

• A reader asks HerMoney CEO Jean Chatzky about how to tackle her debt using the "avalanche" method.
• Q: Today’s question comes from Chris.
• She writes: “What’s the ‘avalanche’ method for paying off debt?” A: When it comes to tackling debt, you’ve got options - and the avalanche m...

A reader asks HerMoney CEO Jean Chatzky about how to tackle her debt using the "avalanche" method.

Q: Today’s question comes from Chris. She writes: “What’s the ‘avalanche’ method for paying off debt?”

A: When it comes to tackling debt, you’ve got options - and the avalanche method is one of the most effective. It’s designed to get you out of debt faster and for less money overall.

Here’s how it works: You pay off the debt with the highest interest rate first. This minimizes the total interest you’ll pay over time, since you’re knocking out the most expensive debt first.

With the avalanche method, you’ll continue to make the minimum payments on all your debts, but any extra cash goes straight to the highest-interest one. Once that’s paid off, move on to the next debt with the next highest interest, and put extra cash toward it until you’ve reached a $0 balance. Keep repeating the process until you’re completely debt-free.

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Final Thoughts

The bottom line: a little research on ask jean what avalanche goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is one click away.

Originally published at savingswitch.com.