Should I pay off the smallest debt first?
People overwhelmed by multiple loans struggle to weigh whether to target the smallest balance or compare interest rates mathematically. This confusion leaves them stuck, unable to figure out how to piece out differences in amounts or build a concrete payoff order.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Focusing on mathematical optimization by paying down the highest interest rate debt first while making minimum payments on the rest
- 2Paying off the smallest debts first to build psychological momentum and confidence
- 3investing the cash in retirement accounts, HSAs, or taxable brokerages instead of paying off low-interest debt
- 4waiting to blend mortgages together at the refinancing mark
- 5Evaluating whether to liquidate company stock
- 6Comparing interest rates between car loan and mortgage
- 7Attempting to pitch financial decisions to a spouse
- 8Following community wiki flowcharts or prime directives
- 9Using debt avalanche method based on interest rates
- 10Using debt snowball method
- 11Building a small initial emergency fund before aggressively tackling debt
- 12putting paychecks into alternative banking apps to build credit
- 13making monthly payments on the largest medical bill
- 14Focusing payments entirely on the highest interest rate card first instead of complex balance transfer schemes.
In their words
Unedited, most upvoted first, each linked to the thread it came from.
“I find finances very hard to deal with, numbers are not my strong suit so im just hoping for some guidance on what people have done or would do.”source ↗
“I don’t know whether to tackle the smallest first ? Or all of them equally.”source ↗
“Trying to prepare and lower one monthly payment either home or car (no other debts, no CC, other car is paid off, no student loans) household income is $220K.”source ↗
“Should I cash out some company stock and pay off the car ($730 payment at 6%) or recast our mortgage to drop $500 (4.5% interest with 26 years left).”source ↗
“I don’t know how to pitch it to my husband. Never done anything like this.”source ↗
“these big big ones are looming over me :(”source ↗
“Which to oay off first?”source ↗
“Is the instinct to pay down the smaller mortgage wrong? I was hoping to just blend them together at the 2 year refinancing mark for the original mortgage.”source ↗
“I just dont know the formula to piece out the differences in amounts.”source ↗
“Im mid move and my brain is toast. I appreciate any guidance you can offer. 🙏🏻”source ↗
“Trying to help my boyfriend (28m) get his affairs in order but wanted advice on the order of importance - he has about 30k in student debt, 10k in credit card debt on which he makes minimum payments, and zero emergency fund.”source ↗
“I know you’re supposed to focus on paying down high interest debts first- CC or student loans first? And should he build a small emergency fund in tandem, and then wait to expand it until those are paid off?”source ↗
“Should I get my first credit card, or pay more payments on medical/hospital debt?”source ↗
“is paying back on my smaller debt bills + attempting to pay larger amounts to my one large bill more important right now?”source ↗
“If there are any tips for how to more easily pay off medical debt with a low salary, please let me know that as well.”source ↗
“So I have a 5800 card at 14% and a 4000 card at 27%. Mathematically is it better to knock out the 14% one then balance transfer the 27% one to that card?”source ↗
“I generally pay about 1200 a month to a card so trying to knock these out as fast as possible.”source ↗
Where this came up
People with this problem also raised
- 5Should I use my savings to pay off student loans?
- 20Should I pay off debt or start investing and saving?
- 34Why minimum payments don't lower high-interest credit card debt
- 3Should I drain my savings to pay off a car loan?
- 6Should I pay off zero interest debt early or keep the cash in savings?
- 4How to make extra loan payments go to principal