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 wherever a dollar is most expensive, which is what minimizes total interest paid across the whole payoff.

Avalanche vs. snowball

Debt snowball orders by balance size instead of rate — smallest balance first — trading some interest savings for the psychological win of closing an account sooner. 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 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.