The order to repay debts in, and why people argue about it

These are listed in the order worth acting on, which with debt repayment order is not the order they are usually presented in.

The two methods

Both pay minimums on everything and direct all spare money at one target. Highest rate first minimises interest; smallest balance first clears individual accounts faster. The difference in total cost is usually smaller than expected unless one debt carries a dramatically higher rate.

Why the cheaper method is not always the better one

Research on consumer repayment has repeatedly found higher completion rates for the smallest-balance approach. Closing an account produces visible progress that a slowly falling balance does not. A method that gets finished beats a cheaper one that gets abandoned, which is the entire practical argument.

A hybrid usually wins

Clear one or two small balances for momentum, then switch to strict highest-rate order. Anything at a punitive rate should jump the queue regardless of size. The ordering matters far less than the amount directed at it each month.

Stop the inflow first

No repayment strategy survives continued borrowing, and this is the step most often skipped. Freezing cards, removing stored card details and switching to a debit account for daily spending all reduce the friction of stopping. Where borrowing is funding essentials rather than wants, that is a different problem and needs advice rather than a strategy.

Where to get help

Free debt advice charities exist in most jurisdictions and can negotiate reduced payments, freeze interest and arrange formal solutions. Commercial debt management firms charge for services that are available free. Contacting a free service early is consistently better than contacting one late.

Everything above, in order of what to do first

1. The two methods. Both pay minimums on everything and direct all spare money at one target.
2. Why the cheaper method is not always the better one. Research on consumer repayment has repeatedly found higher completion rates for the smallest-balance approach.
3. A hybrid usually wins. Clear one or two small balances for momentum, then switch to strict highest-rate order.
4. Stop the inflow first. No repayment strategy survives continued borrowing, and this is the step most often skipped.
5. Where to get help. Free debt advice charities exist in most jurisdictions and can negotiate reduced payments, freeze interest and arrange formal solutions.

The takeaway

Pick the method you will finish, stop borrowing, and get free advice early if it is unaffordable.

Pick the one that costs you least, and let the rest wait.