The Choices
Which answer is correct?
Avalanche is about interest cost, not balance size.
- A Smallest balance
- B Highest interest rate
- C Newest account
- D Highest minimum payment
Answer: B · Highest interest rate
The avalanche method attacks the highest interest rate first because that debt grows fastest and costs the most per dollar.
The money lesson
Avalanche targets the highest interest rate first. Snowball targets the smallest balance first.
This puzzle is designed to make one financial rule easier to remember. Use it as a starting point, then run your own numbers before making a real-world decision.