How's Everyone Doing in LTL Right Now?

I agree that no debt is better than debt.

The question is - if debt is going to exist what is the cheapest and safest way to use debt?

If things went south and I was faced with not being able to pay a loan, I would much rather be dealing with default of a home loan than default of a car loan. Or needing to use credit card debt to necessary expenses.

As to "pay down the smallest loan first" - say you have a $5000 loan at 3% and a $10k loan at 10%. You have a $1000 to make an "extra" payment. If you pay down the $5k loan you're costing yourself $300 over the next year. Pay down high interest and high risk loans first.