Pay Lowest Debt First

credit card debt reductionThe following piece is courtesy of Wixx and our satellite site Debt Reduction 101. Although some argue that your should alwasy always pay off the highest interest debt first, here’s another side of the coin and an argument that it can be good to pay off your lowest debts first.

Personally I side with paying off the higher interest debts first, much in the same way I believe that you should pay off debt before having an emergency fund. That being said, I do realize there are a wide variety of opinions on this subject (and even numerous exceptions that I can agree to) and people should choose the debt reduction plan that works best for them. In the end, any type of debt reduction plan i


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4 Responses to Pay Lowest Debt First

  1. samerwriter says:

    If one has a lot of small relatively low-interest rate debts, I think paying these off before the higher interest rate debts is the right thing to do.

    Why? Well ultimately we’re all trying to achieve some peace of mind by paying off our debts. Writing checks to service a dozen (or more!) loans every month is complex and time consuming, and seriously detracts from peace of mind.

    So if you’re able to pay off a smaller loan by increasing principal payments for a couple months, do it! You’ll thank yourself…

  2. Perky says:

    “Although some argue that your should alwasy” I do the as thing all the time too :)

  3. JT says:

    This is dumb. We have 2 large debts — each with locked interest rates of 3.25%, 4.5%, and 5.5% — and each tax deductible. My investments guarantee 4% and make as much as 12% per year. Why the heck would I pay off these debts early? With my investments, I’ll be FAR ahead in the long run.

  4. ben says:


    It wasn’t written for people in your situation. It was written for people with high interest credit card debt. I wish people would comment within the context that things are written.

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