Debt Avalanche in India — Getting Debt-Free in the Optimal Order

## Setting up your avalanche List all your debts from highest to lowest interest rate: 1. Credit card outstanding: 36–42% 2. Personal loan: 12–24% 3. Auto loan: 8–12% 4. Education loan: 8–10% 5. Home loan: 8–9% Pay minimums on all. Throw every extra rupee at the credit card first. ## The freed-up payment trick When the credit card is paid off, you don't reduce your total monthly debt payment. Take what you were paying on the card and add it to the personal loan payment. This is the "roll-up" — your total debt payment stays constant but each debt gets cleared faster. **Example:** - Minimum on all: ₹22,000/month - Extra throw: ₹5,000/month - Total: ₹27,000/month - Credit card cleared in month 8 - From month 9: throw ₹6,000 (card's old minimum + extra) at personal loan - Personal loan cleared faster — same total payment ## One exception: employer EPF match Always contribute enough to get full employer EPF match, even while in avalanche mode. Employer EPF match is a 100% guaranteed return — no debt has a 100% interest cost.