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No. of Recommendations: 3
If that's what works for you, then that's the best way for you to pay off the debt. There are always opportunity costs. If you were snowballing, the opportunity is having to continue paying more bills each month, at a gain of paying less in interest. If you choose to pay off smaller debts, you will gain by not having as many bills to pay, and your opportunity cost will be the extra interest you will end up paying on the AMEX.

For me, I'm a numbers kind of person, and to not snowball would seem to be less efficient to me. But, if you need to be able to pay off all of the smaller debts before you can concentrate on the big one, then you just need to acknowledge that, and set up a plan for that method.


I second that emotion (can we all sing together?)
It sounds like you need (and I completely understand this) the emotional boost that will come from paying off your car. Go for it! It's all good. In my rental real estate payoff plan, my strategy was to pay off the lowest balances first. The sooner I did that, the sooner larger amounts of capital became available to snowball into the next mortgage. Of course, the spread between highest and lowest interest rates was only about .5%, so the emotional boost was worth far more than the monetary advantage of paying off the higher interest balances first.

In the end, I've taken $177,650 in debt and whittled it down to $90,813 in only 19 months. That's $86,837 paid off. More here:

http://payoffmyrentals.blogspot.com/2014/06/what-snowball-up...

We could argue the financial merits of doing it differently all day long. But, in the end, it's all good! Do whatever helps you stay on track.
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