TehBamski@lemmy.world to Comic Strips@lemmy.worldEnglish · 14 hours ago[Use it while you can] by Owlturdi.imgur.comimagemessage-square12fedilinkarrow-up1397arrow-down16
arrow-up1391arrow-down1image[Use it while you can] by Owlturdi.imgur.comTehBamski@lemmy.world to Comic Strips@lemmy.worldEnglish · 14 hours agomessage-square12fedilink
minus-squareSlopppyEngineer@lemmy.worldlinkfedilinkarrow-up7·8 hours agoBecause of this, there is financial advice to pay back the smallest loan first and work your way up to the bigger ones. It doesn’t make any sense financially, but helps with motivation.
minus-squareZoopZeZoop@lemmy.worldlinkfedilinkarrow-up1·5 hours agoDoesn’t it make sense to pay back the loan with the highest interest first, regardless of total debt amount?
minus-squareSlopppyEngineer@lemmy.worldlinkfedilinkarrow-up3·4 hours agoYes, but many people need a small quick win first or they give up completely.
![[Use it while you can] by Owlturd](https://i.imgur.com/DqljxCC.png){kind=link}
Because of this, there is financial advice to pay back the smallest loan first and work your way up to the bigger ones. It doesn’t make any sense financially, but helps with motivation.
Doesn’t it make sense to pay back the loan with the highest interest first, regardless of total debt amount?
Yes, but many people need a small quick win first or they give up completely.