Interest payment

Why should I pay the smallest debt first, instead of the high rate?

2 Answers

See, it is psychologically motivating to pay off the smallest debt. Once you pay off the smallest debt, you become confident that you can repay the other debts. You'll become motivated and give extra effort to pay off the other debts.   

It has a twofold effect. First, the peace of mind you derive from settling a debt quickly gives you a psychological edge and motivates you to keep paying off further debts. Secondly, reducing the total amount you owe to the creditors means reducing the risks you might face in an emergency or unforeseen situation (like loss of employment).

Write Your Answer

This question is for testing whether you are a human visitor and to prevent automated spam submissions.
What is the sum of 1 and 1

Page loaded in 0.166 seconds.