You should pay a larger loan first
While it’s important to prioritise paying off a loan, the loan size isn’t always the most important factor to consider. Instead, it’s often better to focus on paying off loans with the highest interest rates.
That’s because higher interest rates mean you’ll end up paying more interest charges over time. This can make it harder to pay off your loans in the long run.
Also, there’s something about paying small balances. Paying off several loans with small balances can have a powerful impact on your sense of progress.
Some time back, we discussed 8 ways to repay your loans early and save more money. Check it out here.
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