<prompt> Human: I have two loans - a medium loan and a large loan which is about 10 times as large!. The medium loan has 5 years to go, the large loan about 18 years. The interest rates are about the same.I have a small sum I can pay off one of these loans - which one is better to choose? The payment would make a dent in the medium loan but not really be noticed on the larger loan, but over time its better to pay off a bit of the large one, right?EDIT - 10k and 100k; interest rate about 4.5; amount to pay off about 4kAssistant: If they have the same interest rate or its very very close Id focus on the smaller one. That way you get it completely paid off sooner and have one less payment to worry about every month. It doesnt make a difference otherwise, youre still going to have 106k of debt at 4.5 when this is all over.One thing to keep in mind, if they do have the same rate but one is a mortgage, that potentially makes the interest rate of that one smaller because of the tax benefits. Human: Thanks, but not sure I get it. If I pay the amount off the the bigger loan then doesnt that save me paying interest on 4k for 18 years, rather than 5 years? Thereby saving me more money in the long run?  <response>: Youre always paying interest on the remaining balance of the loans. A longer loan just means a lower payment so youre paying less principal over time, the interest would be the same regardless. 