So I am paying our smallest balance first, even though it’s not one of the highest APRs, because then we can close that card and it will be one less bill to deal with. Our goal is not only to strengthen our finances but also to simplify them.

I have been lurking (as they say) on your blog for a few months now. Thought I would weigh in on this.

The reality is this secret war will never be won or decided because obviously different methods are better for different people and situations. I of course side with you and go for the high rates first because that just makes sense to me. However, in some cases if you have some nagging, or family debts, you might want to knock those out first, or maybe some really small store cards that it would feel good just to check them off the list.

Ultimately I actually think a combination of the three strategies will work the best for most people.

Great post though, and I liked your angle on the “secret war”

For me, it would make sense to get rid of the low balance loan to free up that monthly payment, then attack the car loan, regardless of interest rates. This will free up a substantial amount of money from MANDATORY payments each month. This money can, of course, be snowballed into the student loan BUT during hard times — loss of job, illness, reduced income — more money is available for basic living expenses, while still making minimum payments. Chances of increasing debt again are reduced since there are fewer overall required payments.

Rebecca
http://www.remodelingreconkitchenplans.com