Loan Interest Payment Puzzle / Question

[Pat Mustard]

I'm just sitting here like dude... I work as a loan assistant at a bank... pay off the smaller one cause I said so.

Y'all bring out the math and proof. lol

There's all sorts of reasons why you'll pay up one loan before another given tight circumstances. Interest differentials is one, principal is another, and a third one I can think of is who you're loaning from. For example if I've a 5% loan from the bank and a 7% one from my credit union, I'm a lot more likely to look for longer terms or a payment holiday from the CU because they tend to be a lot more patient with debtors (for many reasons including the fact that I'm a part owner of the institution and that it's a non-profit community investment organisation) and more likely to give a better deal to those with a genuine need, whereas the bank will use the full extent available to them under the law (especially against small fry like me).

Luckily though, I've never had a loan that I've either not paid on time or in advance.