***OFFICIAL*** Bankroll Management For Real Life, Not Poker

[boost]

Oh, and the bit about paying off the smallest loans first, its so that the principal part of the current repayment can be applied to the next loan faster (so its not just the interest amount that you move to the next targeted debt). Theres obviously some point at which one becomes better than the other, but hopefully you have no more than 3 or so debts to work this stuff out for.

You seem to have explained why it can be preferable to pay off the smaller debts first irregardless of interest rates, or at least you think you have explained it, but I am personally still confused as to how this can ever be the right choice.

[ensign_lee]

You seem to have explained why it can be preferable to pay off the smaller debts first irregardless of interest rates, or at least you think you have explained it, but I am personally still confused as to how this can ever be the right choice.

For most people, I think it's more motivational; they can see that they're making progress. So even though they may end up paying more in interest in the end assuming they went through the entire process, it is valuable because without the "snowball" effect, most people would lose motivation for paying off their debts.