How To Choose Which Debt To Pay First

13 months.

That’s how long it took me to pay $18,000+ in student loans.

They were actually 8 different loans each with their own interest rate.

Paying this off was my #1 priority when I graduated, before racking up any car loans, mortgages, or credit card balances.

How did I prioritize my payments for each loan?

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The Five Key Terms to Know

1. Balance — How much do you owe
2. Interest Rate — What’s the APR
3. Minimum Payments — What you must pay each month
4. Avalanche Method — Pay highest interest first
5. Snowball Method — Pay smallest balance first

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Housekeeping: Know Your Numbers

When I am working through different loans… these are the first things to collect.

And you would be surprised how many people don’t know these few details for their loans. 🤯

Balance: How much do you owe for each individual loan, credit card, etc.

Interest Rate: What is the annual percentage rate (APR) for each debt and is the rate fixed or variable? If it’s variable, it can increase at ANY time.

Minimum Payments: What is the minimum amount you need to pay each billing cycle to stay in “good standing”? Note: just because you pay the minimum doesn’t mean you’re making progress on the actual debt!

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Method 1: The Avalanche Method

Focus on the debt with the highest interest rate first.

Continue to pay the minimum payments across all debts… but put any additional dollars towards the debt with the highest interest rate.

Once that debt is paid off, move to the next highest interest rate.

Pros:

• Mathematically optimal — you pay the least amount of interest over time
• Saves the most money in the long run

Cons:

• Can feel slow if your highest interest debt also has a large balance
• Requires discipline without quick wins

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Method 2: The Snowball Method

Focus on the debt with the smallest balance first.

Continue to pay the minimum payments across all debts… but put any additional dollars towards the debt with the smallest balance.

Once that debt is paid off, move to the next smallest balance.

Pros:

• Quick wins build momentum and motivation
• Psychologically rewarding — you see debts disappear faster

Cons:

• You may pay more in interest over time
• Not mathematically optimal

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Which Method Did I Use?

I used a hybrid approach.

I started with the Snowball Method to get some quick wins and build momentum. Seeing those smaller loans disappear felt amazing.

Then, once I had the discipline and habits in place, I switched to the Avalanche Method for the larger, higher-interest loans.

The best method is the one you’ll actually stick with.

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My Debt Payoff Timeline

Here’s how my $18,000+ in student loans broke down:

1. Months 1-3: Knocked out two small loans (~$1,500 total)
2. Months 4-8: Attacked the highest interest loan (~$6,000)
3. Months 9-13: Finished off the remaining loans

By month 13, I was debt-free.

The feeling of making that final payment? Priceless.

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💡 Action Steps

1. List all your debts — Balance, interest rate, minimum payment
2. Choose your method — Avalanche, Snowball, or Hybrid
3. Automate your payments — Remove the temptation to skip
4. Track your progress — Watching the numbers go down is motivating
5. Celebrate milestones — Each paid-off debt is a win

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You can do this. 13 months seemed like forever when I started. But looking back, it was one of the best decisions I ever made.

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This article is for educational purposes and not financial advice. Please consult with a licensed professional before making any financial decisions.