Avalanche debt method is a strategy for paying off multiple debts by prioritizing them based on their interest rates. The goal is to pay off the debt with the highest interest rate first, while making minimum payments on the other debts. Once the highest-interest debt is paid off, you move on to the next highest-interest debt, and so on. This method can save you money on interest and help you get out of debt faster.
The avalanche debt method is most effective if you have multiple debts with high interest rates. It can also be helpful if you have a limited amount of money to put towards debt repayment each month. However, it is important to note that this method can be slow and requires discipline. If you are not able to stick to the plan, you may end up paying more interest in the long run.