yankeeslover wrote:
...which would make more sense to try to make extra payments on...
Opinions vary. The conventional wisdom used to be that the highest interest rate loan would get the extra money. I used to believe that and practiced it until-
A guy named Dave Ramsey started teaching to pay off the smallest loan first. Yes it will cost a little bit more in interest but you gain the satisfaction of getting a loan paid in full sooner. After paying off the first then you apply the first payment plus the extra to the next larger loan. It is called a debt snowball because it gets easier and the momentum builds as the months go by. You gain the feeling of satisfaction and then motivation to continue.
You should really check out his teachings;
http://www.daveramsey.com/home/He has a radio show, gives seminars, and many organizations use his materials to teach classes. I suggest you and the wife take one of his courses. It really can change your life.
Download his podcasts for free and listen at your leisure if he isn't on a station local to you.
For a lot of fun read the section of Dave Ramsey's site called 'Stupid Tax'.
http://www.daveramsey.com/articles/article-list/category/lifeandmoney_stupidtax_user_generated/
