How can I prioritize paying off two credit cards and a personal loan with the same interest rate?

It’s completely understandable to feel a little paralyzed when looking at multiple debts that seem equally urgent. You have two credit cards and a personal loan, all carrying the exact same interest rate, and you’re wondering, How can I prioritize paying off two credit cards and a personal loan with the same interest rate? The good news is that when the interest rates are identical, the choice shifts from a purely mathematical calculation to one based on psychological motivation and cash flow management. This approach will help you create momentum, reduce mental clutter, and streamline your path to debt freedom, which is what truly matters on this journey.
Understanding the Mechanism
When all interest rates are the same, the most effective strategy is to focus on the smallest balance first—this is a variation of the debt snowball method. This strategy maximizes your psychological wins, giving you the boost needed to keep going.
List all debts: Note the current balance, minimum payment, and due date for each of the two credit cards and the personal loan.
Target the smallest debt: Dedicate all extra money you can muster to the debt with the lowest balance while maintaining minimum payments on the other two.
Roll the payment: Once the smallest debt is paid off, take the money you were paying toward it (its minimum payment plus the extra amount) and “roll” that entire amount into the next-smallest debt.
Natural Strategies to Try
Focusing on the smallest balance allows you to achieve a quick win, which is vital for long-term adherence to a debt payoff plan. It transforms the overwhelming task into a series of achievable goals.
Create a visual tracker: Use a printable thermometer or chart to color in your progress as you pay down the target debt. Seeing tangible progress is a powerful motivator.
Automate minimums: Set up automatic minimum payments for the two non-target debts to ensure you never miss a due date and incur late fees.
Adjust your spending: Temporarily cut non-essential expenses like subscription services or dining out to increase the “extra money” you can throw at your smallest debt.
Lifestyle Tips for Long-Term Momentum
This focusing strategy not only pays off the smallest debt fastest but also frees up cash flow sooner to tackle the larger, remaining balances.
Celebrate small wins: Acknowledge and celebrate each debt payoff milestone. This reinforces positive financial behavior.
Rethink the cards: Once the credit cards are paid off, consider freezing them (literally or figuratively) to avoid accumulating new debt. Keep the accounts open to maintain your credit history but stop using them.
Budget with intention: Use a zero-based budget to assign every dollar of your income, ensuring that debt repayment is a non-negotiable line item.
You are building a habit of aggressive debt repayment. Use the debt snowball variation when interest rates are equal to leverage the power of psychological momentum. You’ve got this! Share your experiences in the comments—which debt will you target first?