Composite materials are widely used, so further improving their strength is essential to meet new and higher requirements. Debonding of the matrix from the reinforcement and crack propagation within the matrix are two key mechanisms in the failure of composites. This work introduces an iterative fracture mechanics concept based on configurational forces to predict the crack path within FEM models, capturing both failure mechanisms. This TAC concept is utilized for incremental crack propagation. The procedure is applied to a shear test specimen, made up of rubber embedded between two steel plates. Starting from initial steel-rubber debonding, the location of the kink into the rubber matrix is predicted for various ratios of fracture toughness of the interface and the rubber material, respectively. The TAC concept can be adapted to describe failure in any type of heterogeneous material where debonding and crack growth play a role.