In my own experience in working with people there is the "smart" thing to do, then there is the thing that works! I have people list their debts smallest to largest. They pay the minimum on the larger amounts, and throw everything they can at the smallest debt. When they pay that off they use that money, plus the minimum payment they were making on the next smallest balance. What this does is give people some quick victories that keeps them motivated.
There are, of course, exceptions. One person received $4K and if he had paid off all the smaller debts his cash flow only would have increased about $200 month. Instead we paid off a loan from a family member that saved $1,000 month. Other than that we stuck with the plan and he was debt-free in a little over a year.
Just my two cents worth. The smartest plan is not always the best plan. To each his own!
Starting Score: TU 672 EQ 654 10/20/09