top of page
  • stephenjsilver

The Avalanche Method

Reducing credit card debt can be incredibly challenging for those struggling to manage their finances. Coming to terms with the amount of debt that you are in is an extremely challenging task to face. However, when you begin to accept this, there are a range of methods that you can use to slowly help to pay off debts you have. In this blog we will be discussing the Avalanche method and how it can assist in hopefully reducing

Repayment costs over time.

Repayment Strategy:

Start out by listing all of your credit cards, their balances and interest rates. Make sure to inspect these statements thoroughly to identify which ones obtain the highest amount of interest. Tracking your own minimum required payments and finding the smallest amount of money you have to pay, will also help you to assess how much extra you can allocate towards paying off debts.

A debt avalanche is a payment method where you have to prioritise paying off the card with the highest interest rate first. Since interest rates can increase every month, it is highly important to pay off this card first, as to not be the victim of even more debt to pay off. This payment method only requires you to pay the interest on this card, regardless of the balance, which minimises the total interest paid.

If you have more than one credit card that you are struggling to pay off, you’d pay the minimum onto the lower interest accounts, and pay extra into the credit card with the most money, until it is significantly reduced or fully paid off.

Advantages of the Avalanche Method:

Interest Savings - By completing this method, you will be earning the equivalent of the interest rates of the highest-rated debts once they have been paid off. In turn, this method also leaves you saving the most money in interest over time. Therefore it is good for people that want to save as much money as possible without adding positive reinforcement from knocking out loans quickly to stay on track.

Peace of Mind - While you may not see the results of your efforts straight away with the debt avalanche method, it is still an effective option that puts more money into your savings account over time. The element of ‘peace of mind’ would also come from getting rid of the weighing pressure from having a large sum of money that is still to be paid off.

Additional Advice:

Whilst you are tackling debts, try to live on a cash basis to help to avoid adding to your existing balances. This helps you to be able to keep your debt in check, as by increasing the total amount of purchases over time, you are also increasing more debt if you do not end up paying the bills from month to month. Remember to set realistic goals, celebrate any milestones that you achieve and track your progress to help to stay focused and motivated on your journey.

Silver Insolvency Solutions - Contact Us

We have over 40 years of experience in the industry and can help you to solve issues, which feel impossible to face.

So get in contact with our team as soon as possible! You can email us directly at Or call us on: 0203 961 7169 / 07872 606005.

We hope to hear from you soon!

2 views0 comments


bottom of page