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Originally Posted by Broken Arrow
The short and simple answer is, IF you desire to save more money in the long run, even if it means to "suffer" the sense of crushing debt longer, then the answer is to pay off the loan with the highest interest first. IF you value simplifying your debts and need motivational boosts to keep yourself going more than you need to save more money in the long run, then pay off the smallest balance first.
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No flames here (not sure why anyone would debate this response). You are absolutely right.
There is frequently emotion tied up with our finances. I chose to repay my student loans way early (13 years ahead of schedule) because I hated having them and not pre-paying would have meant I would still have had my own student loans when my child was in college. It wasn't the best financial decision because the interest rate was very low, but it was the bets decision for me at the time.
In your case, I don't think taking 3 months to repay the car loan and being done with it would cost you that much in interest on the big loan. I'd have no problem doing that to simplify things and feel better about your situation.