𝜯𝐞𝐡 𝜝𝐚𝐦𝐬𝐤𝐢@lemmy.world to Comic Strips@lemmy.worldEnglish · 2 years ago[Use it while you can] by Owlturdi.imgur.comexternal-linkmessage-square12linkfedilinkarrow-up1471arrow-down17
arrow-up1464arrow-down1external-link[Use it while you can] by Owlturdi.imgur.com𝜯𝐞𝐡 𝜝𝐚𝐦𝐬𝐤𝐢@lemmy.world to Comic Strips@lemmy.worldEnglish · 2 years agomessage-square12linkfedilink
minus-squareSlopppyEngineer@lemmy.worldlinkfedilinkarrow-up7·2 years 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-up1·2 years agoDoesn’t it make sense to pay back the loan with the highest interest first, regardless of total debt amount?
minus-squareSlopppyEngineer@lemmy.worldlinkfedilinkarrow-up3·2 years 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.