Debt avalanche
Debt, arrears & collectionsA repayment method where you focus on the highest interest debt first.
Overview
This method reduces total interest costs over time.
It can take longer to see early wins compared to the snowball method.
Why it matters
- It is often the cheapest repayment strategy.
- It reduces interest costs faster.
- It can improve long-term affordability.
FAQs
Is the avalanche method better than snowball?
It often saves more money, but the best method depends on what keeps you on track.
Does it help my credit score?
Lower balances can improve utilisation, which may help your score.
Related terms
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