Is it better to pay off the smaller loan with the smaller interest, or the larger loan with the higher interest first? Some say the higher interest loan, but others say the smaller one first so you can add that payment to the other loan. Which do y'all say and why?

no matter the size of the loan, it's always better to pay off the high interest stuff first.

I think it depends on who you ask!

Some will say pay off the highest ones regardless of interest rate & some say pay off the one with the highest interest rate even if it is the lowest amount odded.

For me personally, I would rather pay off the smaller amounts first regardless of the interest rate. Simply because in my eyes, I would see that we were making progress & be more apt to stick with it. If I am paying on a large amount but it has a low interest rate, I would see the positives of it right away & might get discouraged.

I say do whatever you feel work would the best for you!

I would say it depends the amounts. If ther is not much of a difference I would go with the big and Hight interest but if the small one is really small and you can pay it off with just one payment then I would do that one first and get it out of the way.

You pay off the smaller amount owed first, regardless of the interest rate...

Then you take that monthly payment saved, and apply it to the larger one.. It's called The Debt Snowball method.

In theory, by the time the final debts are reached, the extra amount paid toward the larger debts will grow quickly, similar to a snowball rolling downhill gathering more snow.

It helps you mentally too. When you pay the smaller debts first, you have fewer bills coming in the mail, and you can actually SEE progress on getting out of debt. It's a great incentive.

Basically, I just want whichever one works faster! lol I just want the vehicles to be OURS, ya know? Maybe I'll do the math-geek thing and figure it out while the kids are napping. lol

ETA - You know, I think I'll tackle the smaller one first. Like some of you ladies have said, it'll be greater incentive. Thanks!

In financial theory, you'd pay towards both, but try to get the higher interest down, b/c the longer you leave it the more you pay in interest that doesn't go towards your principal. If you want just the cheapest way to do it. it is pay off the higher first.

You pay off the smaller amount owed first, regardless of the interest rate...

Then you take that monthly payment saved, and apply it to the larger one.. It's called The Debt Snowball method.

In theory, by the time the final debts are reached, the extra amount paid toward the larger debts will grow quickly, similar to a snowball rolling downhill gathering more snow.

It helps you mentally too. When you pay the smaller debts first, you have fewer bills coming in the mail, and you can actually SEE progress on getting out of debt. It's a great incentive.

:yes

You pay off the smaller amount owed first, regardless of the interest rate...

Then you take that monthly payment saved, and apply it to the larger one.. It's called The Debt Snowball method.

In theory, by the time the final debts are reached, the extra amount paid toward the larger debts will grow quickly, similar to a snowball rolling downhill gathering more snow.

It helps you mentally too. When you pay the smaller debts first, you have fewer bills coming in the mail, and you can actually SEE progress on getting out of debt. It's a great incentive.

:agree