Playbooks

Pay off high-interest debt

A common order is a small cash buffer, the full employer match if it is available, then every extra dollar against double-digit debt. Avalanche minimizes interest. Snowball finishes small balances first. Pick one and do not open new card debt while you do it.

Arc · Published September 18, 2026 · Updated September 18, 2026

Who this is for

Anyone paying credit-card or other double-digit rates. A 6% mortgage is a different playbook.

Why it matters

A 20% card rate is a certain loss. Few planning returns clear that after risk. Paying it is the rare “return” that does not depend on a market.

A common sequence

List balances, rates, and minimums.
Keep one month of essentials in cash so the next grocery trip does not go back on the card.
Contribute enough to get the employer match if missing it costs more than a month of delay.
Send extra money to the highest rate (avalanche) or the smallest balance (snowball).
When a balance hits zero, roll its payment to the next one. Do not absorb it into spending.

Exceptions

If the minimums already exceed what you can pay, the next step is the lender or a nonprofit credit counselor, not a tighter spreadsheet. Arc does not negotiate debts.

Worked example

$4,000 at 22% with a $120 minimum, and $1,500 at 16% with a $45 minimum. An extra $300 goes to the 22% balance under avalanche. The calculator on the debt tool runs the months. The point of the playbook is the order, not a promise about the calendar.