[poundwise]

Good point. Revolving credit is a beast.

Haku, I agree that is best to focus all efforts on a target debt but I put a small amount away each month as a hedge against having to dip back into a card. I understand your logic and, in fact, agree with it, but it is nice to know I have some cash if I need it.

As for snowballing, I don't particularly care for the term, but the concept, focusing all effort on one debt and then, when its paid, take that effort+ now and focus on the next is sound and works. The idea of paying lowest balances first v. highest interest first has merit for some people, however, it will cost more in the long-run. I believe sometimes a mix is best. I had a credit card with a small balance (less than $400) that I paid as my first payoff when I started seriously addressing my debt. It was not the highest balance but it was easy to get rid off, gave me a good start psychologically, and also, this payment was due at a time in the month that was bad for me to both remember and have the funds available in time. After that one, I have turned my attention to my second highest balance and highest interest rate.

I will likely pay the remainder of my debts according to interest rate, however, I have a couple of debts that are close (within 2%) in terms of interest rate and yet the minimums asked for are different. If I pay the one with the slightly lower rate, but the higher minimum, then when it is paid, I will have more money to focus on the other and in the end, mathematically, it comes out better to have done so. So, 'always pay higher interest first' isn't necessarily correct every time - though I think it is correct the vast majority of the time and is the best practice overall.

I do think credit card debt takes precedence over loans but usually this is obvious because the interest rate is higher on cards that autos, etc. Sometimes though, loans from American General or CitiFinancial, etc. can have a high rate.

I think it is safe to say that there are many considerations and some advice is better than other but there may be legitimate exceptions to the rules from person-to-person.