I know we don't want to follow the Dave Ramsey method because it wouldn't make sense for us. The smallest debts are not costing us the most in interest each month, so I want to pay off the higher interest debts first. My question is, which should I pay off- the highest percentage rate, or the debt with the highest interest charge each month?
debt #1: $6,400 - 11.25% interest (about $74 in interest a month right now)
debt #2: $13,500 - 1% interest (about $135 in interest a month)
I've been paying more money towards debt #1, and I'm wondering if this is a mistake since it's not costing the most each month? Any help would be appreciated! Thanks :)