Debt & Credit
Beginner
Debt Avalanche
💡 In plain English: Pay off your highest-interest debt first — mathematically optimal, saves the most money.
Definition
A debt repayment strategy where you pay minimums on all debts and direct extra money toward the highest-interest debt first.
📌 Real-World Example
Debts: Credit card 42%, personal loan 18%, car loan 10%. Avalanche: attack credit card first. Saves ₹80,000+ vs paying off car loan first.
Related Terms
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