TehBamski@lemmy.world to Comic Strips@lemmy.worldEnglish · 1 month ago[Use it while you can] by Owlturdi.imgur.comimagemessage-square12fedilinkarrow-up1469arrow-down17
arrow-up1462arrow-down1image[Use it while you can] by Owlturdi.imgur.comTehBamski@lemmy.world to Comic Strips@lemmy.worldEnglish · 1 month agomessage-square12fedilink
minus-squareSlopppyEngineer@lemmy.worldlinkfedilinkarrow-up7·1 month 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-up1·1 month agoDoesn’t it make sense to pay back the loan with the highest interest first, regardless of total debt amount?
minus-squareSlopppyEngineer@lemmy.worldlinkfedilinkarrow-up3·1 month 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.