Personal Finance
Debt Avalanche
Definition
What is Debt Avalanche?
A debt-repayment method prioritising the highest interest rate while making minimum payments on others.
Example in practice
How This Looks in Practice
The borrower clears a 30% loan before a 12% loan.
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Related Terms
Personal Finance
Savings
Money set aside rather than spent, often for emergencies or future goals.
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Liquid savings reserved for unexpected expenses or income disruption.
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Total assets minus total liabilities.
Retirement InvestingWithdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.