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West Tennessee | Every situation is different. I've seen situations where it made sense from a cash flow standpoint to pay off a high payment but relatively low interest loan to free up cash flow. I'm sure no one here owes anything that isn't a tax deductible loan but "if" one did then they would need to factor what the after tax cost of their interest is before deciding which loan is higher interest. For some people it does feel better to pay off smaller loans and then apply their payment to the next smallest and so on. From a pure financial standpoint paying off the highest interest loan (after tax considerations) first makes the most sense for sure but sometimes other issues can prevail for some people. | |
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How do you pay back your debt?
