Optimal Finance Daily - Financial Independence and Money Advice 3423: What Debt to Pay Off First: A Simple Way to Decide What’s Best by Jackie Beck on Repayment Priorities
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Jan 15, 2026 Explore the intriguing idea that emotions, rather than logic, are key to effective debt repayment. Learn how focusing on smaller debts can build momentum and keep you motivated. Discover two key questions to prioritize your repayments for emotional relief. Hear about the benefits of the debt snowball method, which emphasizes quick wins. Additionally, find insights on how to address debts hurting personal relationships. Finally, shift your mindset to prioritize consistent repayment over a perfect strategy for true financial progress.
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Emotions Drive Debt Behavior
- Logic rarely explains why people borrow; emotions and impulses usually do.
- Since emotional factors created the debt, emotional motivation will better sustain repayment behavior.
Start With The Smallest Debt
- Put your debts in order from smallest to largest and eliminate the smallest balance first to build momentum.
- After you clear one, apply its payment amount to the next smallest until all debts are gone.
Prioritize Emotionally Painful Debts
- If a specific debt is causing emotional pain, prioritize paying it off even if it's not the cheapest interest-wise.
- Ensure the emotional motivation is strong enough to carry you to completion.