There are two options for your debt payment plan. They are:
- Smallest balance
- Highest interest
With each option you pay the minimum amount on all of your accounts except one (either the one with the smallest balance or the one with the highest interest) which you pay as much as you possibly can given your budget. When you have that account fully paid off you take the amount you were paying on it and then apply it fully towards the next account (the one with the next smallest balance or the next highest interest).
Mathematically you will save a bit more money by paying off the account with the highest interest rather than the one with the smallest balance but statistically you are more likely to stick to the plan by paying off the smallest balance and building up momentum with each debt you pay off.
