Which debt would you pay off first?

vanillabean — Tue, 17 Jan 2012 16:48:23 GMT

A Better Way To Pay Off Debts (simplification bias)

"In a series of surveys and studies, the investigators identified and examined a cognitive bias they call “debt account aversion”: a strong preference of people with multiple loans to pay off smaller debts first, even when it makes more sense to pay down larger balances on loans with higher interest rates."

New research debunks popular method of paying off debt (debt account aversion)

"Their results show that consumers with multiple debts focus on reducing the total number of outstanding loans rather than on the total debt across loans. This phenomenon is known as "debt account aversion" and it's a strong bias."

Debt Account Aversion Is Preventing You From Paying Down Your Credit Card

"The inclination of consumers to do this is dubbed “debt account aversion”—which is an emotional, as opposed to rational, approach consumers have to debt reduction."

Which debt should you pay off first?

Re: Which debt would you pay off first?

IOBA — Wed, 18 Jan 2012 02:06:32 GMT

I vote for no debt at all!

Re: Which debt would you pay off first?

vanillabean — Thu, 26 Jan 2012 21:52:10 GMT

@IOBA wrote:
I vote for no debt at all!

Michelle Singletary's Debt Dash Plan might be for you.

Re: Which debt would you pay off first?

IOBA — Thu, 26 Jan 2012 22:31:11 GMT

I agree with what she says!!

I still prefer to be debt free. Completely debt free!!!

topic Which debt would you pay off first? in Credit in the News

Which debt would you pay off first?

Re: Which debt would you pay off first?

Re: Which debt would you pay off first?

Re: Which debt would you pay off first?