Which is the Best Debt to Pay Off First? – Taylor

“Dear Steve,

I have some extra money this month and wanted to know which was the best way to go. Pay on the cards with the smallest balances or highest or is the better route the one with highest interest?


Dear Taylor,

If you’ve come into some extra money I’d first suggest you save a third of it before you do anything if you don’t have a couple of thousand dollars at least in an emergency fund. Just put it in a boring savings account and keep it handy so unexpected future expenses don’t have to wind up on credit.

Then you may want to take the rest and apply it towards the lowest balance accounts and hopefully knock one out. You can then take those funds you would have sent each month on that debt you just killed and add it to your monthly payment you send your debt with the highest interest rate.

Getting out of debt is a slow and steady journey.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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