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Old 06-02-2009, 01:55 PM
Merch Merch is offline
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There are two schools of thought on this.

The first is the mathematical. If you pay off the highest interest first, you will get out of debt quicker. This is always true because you are paying less interest over the time frame you are paying off debt.

The second school is that getting out of debt is changing personal behavior. Therefore you pay off the smallest balances first and build some wins. Your behavior starts to change and as you pay of each debt you get positive reinforcement.

Personally, I prefer the second approach because I believe you need to change your behavior for long term success. I also believe that the difference in the 2 approaches is usually 2-3 months. In my case the difference was 2 months.

The question you should ask yourself is are you already disciplined enough or do you think you need to change your behavior and I think that will help you decide the best approach.

Good luck.
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