Dave Ramsey's theory is to pay the smaller ones off first, because it makes you feel like you have accompolished something. Then you roll those amounts over into the next bill, and so on, until they are all paid off.
That's kind of what we are doing, with some tweaks. For instance, we owe a little less on one DVC contract then the other. So, according to Dave, that should be the next one I tackle. But in reality, I am going to go for the slightly higher one first. Why? Several reasons: first, the interest rate is higher than the second one. Second, that payment is almost 2 1/2 times what the other payment is monthly, so when that's paid off, it will free up more monthly money to rollover into the next debt. And third, it will be paid in full by 2011 with no intervention from me, and the other will be paid in 2012. If I do it this way, I can have both of them paid off in 2010.
I think whatever makes you feel the most comfortable and gives you the best sense of accompolishment is the best plan!
