Paying off one loan at a time?

level200

Hi everyone

I have a few loans that I have been paying. It occured to me that instead of paying small amounts to each loan and gradually pay off. Doesn't it make more sense to pay off a huge chunk off one loan each month quickly getting rid of the smaller loans to allow even bigger chunks to be gradually paid off the larger loans. Is this possible?

Seeing quicker progress would be a huge boost to moral and encouraging paying off more quickly.

ellenvan

If one loan has a higher interest rate pay that off first and the minimum on the other loans
Are they actual loans that allow overpayments or are they credit cards?

level200

Actual loans. Is it possible to put the others on hold as I gradually pay off the high interest loans?

TadleyBaggie

level200 said:

Actual loans. Is it possible to put the others on hold as I gradually pay off the high interest loans?

Not without trashing your credit files.

macman

level200 said:

Actual loans. Is it possible to put the others on hold as I gradually pay off the high interest loans?

You might be able to negotiate a payment holiday, but this does not stop the interest due, that continues to accumulate.
Just pay off the maximum you can on the loan with the highest APR, and work through them on that basis, paying the minimum on those with the lowest APR.