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Why avalanche minimizes interest (first half). The avalanche method prioritizes paying extra on the debt with the highest APR while making minimums on others. Mathematically, this minimizes total interest paid because every extra dollar allocated to the highest-rate debt immediately reduces the amount that would otherwise accrue the greatest interest per dollar. Over the full payoff timeline, this approach yields the smallest cumulative interest outlay compared with other prioritization schemes. In the quiz scenario (22%, 12%, 6%), the 22% balance generates the most interest per dollar outstanding, so directing extra payments there first is the cost-minimizing strategy.
Behavioral tradeoffs and practical tips (second half). Avalanche is best when minimizing dollars spent on interest is the priority and the borrower can sustain the discipline — however, it can feel slow if the highest-rate balance is also large. If motivation is a challenge, hybrid approaches exist: do a quick snowball on a very small balance for momentum, then switch to avalanche on the highest APR. Also consider fees, promotional rates, and tax treatment (where relevant) before shifting dollars: sometimes a balance transfer or refinance yields a lower effective rate and improves the math for which account to attack first.
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