<prompt> Human: I see frequently around here that if we have several debts to pay off ie. auto loan, student loan, home mortgage, that we should first pay off the one with the highest interest rate. I would argue that we should look at which debt accrues the highest amount of interest and pay that off, rather than the one with the highest interest rate.Well save more money this way.To make up an example:I have a 400,000 home mortgage loan and the awesome interest rate of 3.5.I have a 50,000 student loan at the interest rate or 4.0.Although my interest rate on the mortgage is lower, I pay far more in interest on the home mortgage than on my student loan. So wouldnt I actually save more money by paying down the home mortgage first, even if I can only pay 20,000 now?At some point, when I pay enough into the mortgage, my interest payment amount will be equal to or less than my student loan. At that point I would be well advised to pay down my student loan instead.So tell me gurus and wanna be gurus, is my reasoning off here?  <response>: When you pay 1000 on the 4 loan, you save 4 interest on 1000.When you pay 1000 on the 3.5 loan, you save 3.5 interest on 1000.Its the amount of the payment youre making, not the principal of the loan, that determines how much youre saving in interest. 