MAURITIUSHighest-interest-first repayment, also called the debt avalanche, directs extra money to the debt with the highest interest rate. You continue paying every other required minimum while reducing the balance that costs the most in interest per rupee owed.
Unused subscriptions may free up money for debt repayment. Review gym memberships, streaming and app-store renewals before adding extra repayments to your plan. Count savings only once cancellation takes effect; protect essential spending and every minimum debt payment.
With the same payment budget, stable known rates and no extra fees, targeting the highest rate generally minimises interest. More of your money can then reduce principal rather than pay borrowing costs.
This can suit people whose priority is lowering total interest, especially when rates differ substantially. It helps if you are comfortable following a plan even when the first debt takes longer to clear.
Suppose you owe Rs 10,000 at 8% a year and Rs 40,000 at 18% a year, and can afford Rs 1,000 extra each month. Pay both minimums, then send the extra Rs 1,000 to the Rs 40,000 debt because its rate is higher. Once it is cleared, redirect that payment to the Rs 10,000 debt.
Your highest-rate debt may also be your largest, so the first payoff milestone can take longer. Promotional rates, early-payment charges and lender rules can change which order is cheapest. Use current rates and review your plan when terms change.
Snowball and avalanche can produce the same result when they target debts in the same order, or when you have only one debt. In the calculator, both use your extra monthly amount and roll cleared payments forward; the current-payments baseline does neither.
Keep paying every required minimum and leave room for essential expenses and a small emergency buffer. Check your lender’s early-payment rules and fees. If you cannot cover the minimums, contact your lender about support before adding extra payments.