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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]As I recall, Michelle Singletary, the WaPo financial columnist, suggests paying off the one with the smallest balance first so that you feel like you are making progress.

But in terms of saving the most money, paying off the one with the highest interest rate first seems the most rational. [/quote]

[b]Singletary is an idiot, generally speaking. I mean, the woman has no business advising people on personal finances. [/b]

That said, I can see the wisdom in tackling the smallest balances first, especially since it frees up more money to throw at the bigger balances.[/quote]

Why?[/quote]

Mainly because her aversion to debt is completely over-the-top. Most prudent financial advisers will tell you debt is ok if you can earn a higher rate of return on the borrowed money elsewhere, and they would be right. Singletary is all "no debt! no debt! cuz my BIG MAMA said so." Her heavy reliance on a folk hero (her "Big Mama") is also really dumb. Who gives a crap what some old grandmother said?

She's just not very thoughtful. Everything is knee-jerk, anti-debt balance when the reality is that leverage, when used correctly, is a powerful wealth-management tool[/quote]

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