A highest-interest-first strategy definitely sounds optimal, assuming one can survive the hurdles during that time period. For messier situations, I wonder if

A highest-interest-first strategy definitely sounds optimal, assuming one can survive the hurdles during that time period. For messier situations, I wonder if a better short-term paydown strategy is to maximize liquidity. E.g., suppose a person's debt is: (a) ($500/month, 3% interest, 3 months remaining) + (b) ($2000/month, 6% interest, 20 years remaining), and they're barely making ends meet each month. Prioritizing the paydown of (a) could eliminate a lot of psychological/financial stress by reducing the risk of a cash crunch.