Once each debt is paid in full, money used for paying debt is applied towards making additional payments on the next smallest balance. (answers.debtcc.com)
Because balloon loans only require interest payments for the first several years, you will not build equity if you do not make additional payments toward principal. (easychoicelenders.com)
When you're trying to pay down debt faster, you want to maximize how much interest you're gaining so that you can make additional payments towards your debts whenever possible. (wisebread.com)