Avalanche method is a debt payoff strategey focusing on your highest interest rate debt first. First, you organize your credit cards by interest rates from highest to lowest. The amount of debt you have on each credit card, does not matter.
Payall of the minimums and put any extra money towards the credit card with the highest interest rate. Once that is complete, move to the next highest.
Overall, it is straight forward, but just staying focused and understanding where the extra money should go is important.. With discipline, this is a better debt payoff strategy than the snowball method.
Avalanche method is similar to the snowball method by putting any of your extra money towards one debt until it is paid off then you move that money to another card.
Snowball Method vs Avalanche Method
Sense the snowball method focuses on lowest amount of debt first, it allows a person to have psychological wins sooner to keep them focused. While on the othereside, the Avalanche method is mathematically faster, due to less compounding interest.