<prompt> Human: So, I have two loans; one has a 4,000 balance and a 6.8 interest rate, the other has a 950 balance and a 5.75 interest rate. I have the funds to pay off the smaller loan entirely, is it still in my best long term interest to continue to pay on the higher interest loan and let the smaller one decrease gradually? Or is it better to pay off the smaller loan all at once and then return to chipping away at the higher interest loan?  <response>: If your goal is to save the most money, you want to pay all extra money towards the highest interest rate. If your goal is a better mental state and freed up cash flow, pay all extra money to the lowest balance . 