Debt Avalanche Method

The debt avalanche method orders every balance from highest APR to lowest. Every account keeps receiving its own required minimum payment; any money left over — an extra payment, or a minimum freed up when another balance finishes — goes entirely toward the single balance currently carrying the highest interest rate.

Why order by APR

Interest is charged on whatever is still owed. A dollar sitting on a 27% balance is costing you more per month than a dollar sitting on a 7% balance, regardless of which balance is larger. Avalanche routes extra money to the highest-APR eligible debt, which often lowers modeled interest compared with snowball using the same debts and payment budget. Results depend on the entered information, model assumptions, and any debt-specific exclusions.

Avalanche vs. snowball

Debt snowball orders by balance size instead of rate, smallest balance first, and can produce an earlier first account payoff depending on the balances, APRs, payments, and model assumptions. Both keep every account’s minimum payment flowing; they differ only in which balance gets the extra.

What Kalco does with it

Kalco’s avalanche projection reallocates both your extra payment and any minimum freed up when a balance clears, every month, to the next-highest APR eligible balance still open. See avalanche vs. snowball for a worked comparison, and the payoff comparison page separates how much of the savings comes from the extra payment itself versus from that reallocation alone.