The average American has a lot of debt: $15k in credit card debt, $26k in auto loans, and a mortgage of $170k according to the financial website NerdWallet. And those who carry student loans have an average balance of $48k.
All of this debt costs the average household $6,658 in interest each year, which is 9% of the average household income.
How do you pay debts off?
Mathematically, it makes sense to start with the ones with highest interest.
This will reduce your interest burden faster.
Emotionally and psychologically though it makes sense you start from the smallest amount of debt you owe.
This may be your way.
When it’s been paid off you will feel a sense of achievement and satisfaction.
This will give you momentum to carry on further.
When the Israelites were taking over the land of the Canaan they did it bit by bit.
God made them avoid strong enemies at first lest they get scared and chicken out.
They started somewhat small and their confidence grew with their success.
Do not despise the small beginning if it brings you sense of success and attainment.
Hope deferred makes the heart sick, but a desire fulfilled is a tree of life.
Proverbs 13:12