Best use of funds: I have $39,400 available to pay down debt and would like to apply it to one of two existing personal loans

[jillygirl]

I have $39,400 available to pay down debt and would like to apply it to one of two existing personal loans, but am not certain which choice is the best loan to pay down.

Loan 1: Balance is $55,000. 72 payments left. Interest 12.32%. Monthly payment is $1091
Loan 2: Balance is $44,000. 118 payments left. Interest 11.24%. Monthly payment is $629

Looking for your advice. Thank you!

 

[blamocur]

I cannot see why not to pay down the higher interest loan, no matter how many payments left or what the monthly payment is.

 

[jillygirl]

Thank you for your advice, I will do that.