Payoff priority
Which debt should I pay first?
The first debt to target should come from the full debt picture, not a guess based only on one balance or one APR.
What to know
Start with the full list
A good first target uses every entered debt, not only the one that feels most stressful.
- Balance
- APR
- Minimum payment
- Extra payment
- Loan type
Compare the tradeoffs
A high APR target may save interest, while a smaller balance may create a faster first payoff. The better answer depends on the complete plan.
Keep the plan realistic
If a strategy requires a payment that does not fit your cash flow, it may fail even if the math looks attractive.
FAQ
Is the smallest debt always first?
No. Smallest balance first can help motivation, but it may not reduce interest as much as another strategy.
Is the highest interest debt always first?
No. Highest APR is important, but the plan should also compare balance size, payment rollover, and monthly comfort.
Related reading
Make it personal
Build your payoff plan from your real numbers.
Enter your debts once, choose your goal, and see which debt to pay first.