personally I have found it unworkable to just do one thing, like focussing on repaying bad debt to the exclusion of everything else. Its a bit like dieting, I can do it short term, but quickly lose focus and revert to old ways. Id suggest doing a spending plan and include either a dollar figure or percentages for some of the following catagories. rent/mortgage payment/accomodation tithe (for when the mortgage is paid off) saving for investment/retirement saving for holidays bad debt repayment Id then decide if it was better psychologically and economically to save my holiday money 'in' the personal loan for the time being (it has the best effective interest rate, and works on my desire to be out of debt etc) It may be that your happy to allocate $x to each catagory, and the $x is just right for repayments on 3 new personal loans, one for holidays, one for investment one for the furniture etc and you do it all now. You might be happy with this. The loan assessor might not be so happy, and ecomoically speaking it might not be the best use of funds. Id say as long as you have allocated enough funds to each catagory, and you have enough catagories (perhaps a prudent reserve is another catagory thats important) and you dont spend more than you earn, its up to you what your priorities are.