<prompt> Human: I currently have 2 personal loans open 1. 8800 balance with 7.5 interest.2. 32000 balance with 5.5 interest.I have 9000 amount expected to credit my account next week Not loan but selling some investmentWhich loan should i payoff first?Will closing loan 1 , improve my credit, since will be having 1 less loan account and 1 with paid status.Or reducing loan 2 will help reduce principal amount and i will save off interest i was about to payout?I am confused with the decision , so Any help is appreciated?  <response>: Financially, it is always the best option to pay off the debt with the highest interest first.Mentally, it can be a good idea to pay off smaller debts first.In your case, I would completely pay off your 8800 loan. It is the best of both worlds. 