[byusteeler]

I think in 90% of the cases the highest interest debt should be paid 1st. This is particularly true in the scenario given as there is such a vast difference in interest rates. There are some cases where paying lowest balance may be desirable. For instance, if the difference in interest rate is only a small amount like 5.9% on the larger balance versus 6.9% on the smaller balance and the balance of the smaller can be paid quickly it may be worth the $5-10 for the emotional lift especially if you are the type of person who is easily discouraged. Or in a case where monthly outgo must be reduced to stay afloat (Layoff or medical cost or some other emergency.) But in most cases I have to agree with Scott Bilker get rid of the high interest debt first.

Someone (I don't remember who) once said of Interest " Them that understand it, earn it. Them that don't, pay it!"