This method does not save you as much money but does result in quicker victories and gives you the confidence that you can take control of your debts. With this method, you pay off your debt, starting with the lowest balance debt first. You ignore the interest rate of the debt. You pay as much as you can to eliminate the debt completely, and starting with smaller debts enables you to do so. You will quickly gain confidence that you can do it again and again.
APR stands for annual percentage rate and it denotes your annual interest rate instead of a monthly charge. Your APR includes your interest rate and perhaps some additional charges such as document processing, guarantee, loan processing and application charges.