<prompt> Human: PF advocates for the Avalanche and sometimes Snowball methods, are these really the only 2 good options? As far as pure efficiency is concerned, shouldnt you pay the loan that has the highest monthly accrual in interest first? Not just the loan with the highest interest rate? As a general rule of thumb, high interest rate higher interest, but thats not always the case. Let me make an example... Loan A has a Principal balance of 2,000 at 5 annual interest Loan B has a Principal balance of 6,000 at 4 annual interestBoth the Avalanche and Snowball methods would recommend paying off Loan A first, however using a simple monthly interest formula Principal Interest 12, shows that Loan B will accrue almost 2.5 times as much interest every month as Loan A Loan B accrues 20Month in interest, while Loan A only accrues 8.33.The true hidden enemy of a loan aside from the loan itself, of course is not a high interest rate, but the accruing interest itself. If efficiency in loan payments is about focusing on decreasing your interest, shouldnt that mean in cases like this, neither the Snowball or Avalanche methods are correct? Please let me know if Ive missed something or have done some math incorrectly somewhere.  <response>: You can try to abominable snowman. Its where you hide behind some trees while the bankers and creditors are skiing free and then you eat em up. No more debt!This isnt legal everywhere though, so check your local laws. 