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  1. When I was paying off my credit cards (initially 3 credit cards), I was paying off the highest interest rate debt off first. This was because I felt that it was soul destroying seeing the amount of interest eroding away the actual amount I was paying off so for me, it made sense for the highest interest rate to go first. Had they all been the same interest rate, I would have gone for the smallest debt first, for the fastest progress.
    weenie recently posted..Etiquette about Financial PlanningMy Profile

    • Glad you found a strategy that worked for you! I tried the highest interest rate first method, but failed. So I went to the smallest balance first and it worked for me.

  2. Great thoughts! Not too long ago I encountered this very dilemma when I decided to take the leap into my student loan repayment. It wasn’t pretty and it was going to take me a LONG time to pay it off, but I ultimately decided the best financial decision was paying off the highest interest rates first. Sure, I don’t get that quick gratification that paying off the smaller ones would give but in the end I’ll be a happy camper after saving all that interest!
    Christy S. recently posted..Summer Treats: Cranberry Lemonade PopsiclesMy Profile

  3. Prioritizing your debt is the key and one should pay the debt with the higher interest rate. If there is not much interest rate difference, then, it is better to go for the debt which you can get rid easily.

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