The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk.
A debt avalanche is an accelerated system of paying down debt that is based on paying the loan with the highest interest rate first. Learn how to use the debt avalanche. Read more
The debt avalanche method pays off the high-interest debt first, and the debt snowball method focuses on paying off the smallest debt first. Learn about other differences. Read more