Behavior vs. logic

Behavior trumps logic. If you want to pay off debt quickly, the maths says that it is best to attack the highest interest amount first, then work your way down to the next highest.

However, it turns out that debt payments are not a maths problem, they are a behavior problem. Therefore the opposite (attacking the smallest interest amount first, and then using the payments from that amount to pay off the next smallest etc) is the best way to change behavior and cancel debt.

Small manageable victories are always more sustainable than large sacrifices, even if they are not scientifically going to get you to your goal most efficiently.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s