TehBamski@lemmy.world to Comic Strips@lemmy.worldEnglish · 2 days ago[Use it while you can] by Owlturdi.imgur.comimagemessage-square12fedilinkarrow-up1455arrow-down17
arrow-up1448arrow-down1image[Use it while you can] by Owlturdi.imgur.comTehBamski@lemmy.world to Comic Strips@lemmy.worldEnglish · 2 days agomessage-square12fedilink
minus-squareSlopppyEngineer@lemmy.worldlinkfedilinkarrow-up7·2 days 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 days 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 days 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.