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I know that the best and fasted way to reduce debt is to pay the most on the highest interest account, and the minimum payments on the rest. I also know that the psychological factor plays a big part as well. We have $3,500 to put towards our debt (see below) and I'm looking for input regarding which account(s) to apply it to.

MBNA $17,303.21 12.99%
CITI 3,329.57 12.9/7.9/5.9%
ASSC 4,200.53 6.9%
DISC 2,701.96 9.99%

TOTAL $27,535.27

Any thoughts? It would make the most sense to put it on MBNA, since it has the highest interest rate and the highest balance, but it would also be nice to pay off Discover, even though that monthly payment only comes to $54 per month.

Also, about half of the Citibank balance is at 12.9%, can I pay just that portion off? Or are payments automatically credited towards the lowest interest portion of the balance?
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