What do you focus on?

[Rach]

I've read that you should focus on the high interest debts first. But then I've read that you should pay off the smallest debts first.

Which do you agree with?

[CoffeeGirl]

good post Rach

[Bex]

smallest debts then once something is paid off, use that $$ to pay extra on the next debt

[Ellen]

I would like to do the Smallest to Largest.....It's hard when you see the number of the largest and want to bring that down....

But, I agree with the theory of paying off the smaller debt first.

[piggypunkinetta]

I have no clue. I am paying the things with the highest interest rates first. Most of our balances are around the same amount of money. My cari s the biggest balance and payment every month, but it is also the lowest interest rate so I am leaving that for last.

[Rach]

When I think about, it seems paying off the smallest debts first would equal out to if you were to pay the highest interest debts first. When you pay off those small debts, you can then take that payment and tack it on to the higher interest ones, thus you're really not paying more money on the higher interest b/c it's getting paid off in about the same amount of time as if you would of focused on that first.

[Ellen]

Originally Posted by Rach When I think about, it seems paying off the smallest debts first would equal out to if you were to pay the highest interest debts first. When you pay off those small debts, you can then take that payment and tack it on to the higher interest ones, thus you're really not paying more money on the higher interest b/c it's getting paid off in about the same amount of time.

Yes, but the positive energy generated from paying a bill off is contagious!!!

[sharine25]

Higher interest first and then lower interest..But then again it depends how much you have on each account...Like we had a no interest credit card and so we took time paying that..And focus on paying our car loan because it had a higher interest. It all depends on how much you owe...

[rosebud*]

Originally Posted by Rach When I think about, it seems paying off the smallest debts first would equal out to if you were to pay the highest interest debts first. When you pay off those small debts, you can then take that payment and tack it on to the higher interest ones, thus you're really not paying more money on the higher interest b/c it's getting paid off in about the same amount of time as if you would of focused on that first.

also you get the satisfaction of actually paying off a card, rather than months or a year(s) of having to keep paying on that one card, when you could have paid off a smaller card sooner and had more money to pay the larger balances.

[Aundi]

We always do smallest to largest. I like to feel like we are getting somewhere and seeing a small bill go away completely is such a rush