Blogging for Change

Which Debt Should You Pay Off First?

by Jesse Campbell on
6/19/2025
in Repaying Debt
Young couple with child reviewing finances.

The following is present for informational purposes only and is not intended as legal advice or credit repair.

When you feel buried under a mountain of bills, it can be hard to decide what debt you should pay off first. Which one will help you get out of debt faster? Which is costing you the most money? There's only so much money to go around, after all, so getting the most debt-repayment bang for your buck is crucial. 

Finding the answer just takes a little time to get organized and crunch a few numbers. Here are some questions to ask to help you determine which debts should be getting your attention right now.

Which debt is costing you the most money?

A debt is much more than just the balance or the monthly minimum payment. Interest rates and other factors go a long way toward determining how much a debt is costing you on a monthly basis.

Consider how much each debt is costing you in fees and interest charges every month. From a pure money-saving perspective, focusing on the debts that cost you the most money will save you the most money in the long run. But that's not the only consideration. 

Are there any quick wins?

Sometimes, when you're overwhelmed with debt, just getting something paid off can really boost your spirits and give you some much needed momentum.

If you're juggling a lot of debts at once, it may be worthwhile to just focus on the easiest debts to pay off. Targeting your smallest balances first can simplify your life (less debts to worry about) and create a little extra wiggle room in your budget now that you don't have to worry about the minimum payments on those accounts.

What are your repayment options?

Mortgages and student loans are usually not the debts you'll want to prioritize, because they're investments, and perhaps more importantly, because the interest rates on these loans are usually much, much lower than other kinds of debt.

But while you may not want to focus on either, it's important to keep in mind that both come with variety of refinance and consolidation options. Refinancing your home or your student loans may not accelerate your repayment, but there's a good chance it may help make your month-to-month budgeting a little easier.  

Credit card debts and personal loans, however, may become much more affordable if you find the right consolidation solution. As such, it may make sense to focus on debts where you have more flexibility or better opportunities to save money or speed up your repayment.

How do your debts impact your goals?

Are you prioritizing rebuilding your credit score? Are you hoping to pay off a few accounts so you can refocus on building your savings? Is being debt-free your only goal and it doesn't really matter how you get there?

When considering where to focus the limited amount of funds you have available, think about how each debt (and each debt payment) gets you closer or further from your goals and set your repayment strategy accordingly. 

If you need help creating a plan to serves your goals, we can help. MMI offers free financial counseling 24/7, online and over the phone. Better yet, our debt solutions have been proven to help clients repay debt 7x faster than doing it alone.

Tagged in Debt strategies, Build your credit score, Debt collection

Jesse Campbell photo.

Jesse Campbell is the Content Manager at MMI, with over ten years of experience creating valuable educational materials that help families through everyday and extraordinary financial challenges.

Recommended Articles

Young woman using smartphone and making purchase with credit card.
Do Debt Differently
With MMI, you can get out of debt 7x faster than doing it alone.
Learn how
Learn more
  • Better Business Bureau A+ rating Better Business Bureau
    MMI is proud to have achieved an A+ rating from the Better Business Bureau (BBB), a nonprofit organization focused on promoting and improving marketplace trust. The BBB investigates charges of fraud against both consumers and businesses, sets standards for truthfulness in advertising, and evaluates the trustworthiness of businesses and charities, providing a score from A+ (highest) to F (lowest).
  • Financial Counseling Association of America Financial Counseling Association of America
    MMI is a proud member of the Financial Counseling Association of America (FCAA), a national association representing financial counseling companies that provide consumer credit counseling, housing counseling, student loan counseling, bankruptcy counseling, debt management, and various financial education services.
  • Trustpilot Trustpilot
    MMI is rated as “Excellent” (4.9/5) by reviewers on Trustpilot, a global, online consumer review platform dedicated to openness and transparency. Since 2007, Trustpilot has received over 116 million customer reviews for nearly 500,000 different websites and businesses. See what others are saying about the work we do.
  • Department of Housing and Urban Development - Equal Housing Opportunity Department of Housing and Urban Development
    MMI is certified by the U.S. Department of Housing and Urban Development (HUD) to provide consumer housing counseling. The mission of HUD is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD provides support services directly and through approved, local agencies like MMI.
  • Council on Accreditation Council On Accreditation
    MMI is proudly accredited by the Council on Accreditation (COA), an international, independent, nonprofit, human service accrediting organization. COA’s thorough, peer-reviewed accreditation process is designed to ensure that organizations like MMI are providing the highest standard of service and support for clients and employees alike.
  • National Foundation for Credit Counseling National Foundation for Credit Counseling
    MMI is a longstanding member of the National Foundation for Credit Counseling® (NFCC®), the nation’s largest nonprofit financial counseling organization. Founded in 1951, the NFCC’s mission is to promote financially responsible behavior and help member organizations like MMI deliver the highest-quality financial education and counseling services.