Cartesian coordinate transformation between two erroneous coordinate systems is considered within the Errors-In-Variables (EIV) model. The adjustment of this model is usually called the total Least-Squares (LS). There are many iterative algorithms given in geodetic literature for this adjustment. They give equivalent results for the same example and for the same user-defined convergence error tolerance. However, their convergence speed and stability are affected adversely if the coefficient matrix of the normal equations in the iterative solution is ill-conditioned. The well-known numerical techniques, such as regularization, shifting-scaling of the variables in the model, etc., for fixing this problem are not applied easily to the complicated equations of these algorithms. The EIV model for coordinate transformations can be considered as the nonlinear Gauss-Helmert (GH) model. The (weighted) standard LS adjustment of the iteratively linearized GH model yields the (weighted) total LS solution. It is uncomplicated to use the above-mentioned numerical techniques in this LS adjustment procedure. In this contribution, it is shown how properly diminished coordinate systems can be used in the iterative solution of this adjustment. Although its equations are mainly studied herein for 3D similarity transformation with differential rotations, they can be derived for other kinds of coordinate transformations as shown in the study. The convergence properties of the algorithms established based on the LS adjustment of the GH model are studied considering numerical examples. These examples show that using the diminished coordinates for both systems increases the numerical efficiency of the iterative solution for total LS in geodetic datum transformation: the corresponding algorithm working with the diminished coordinates converges much faster with an error of at least 10(-5) times smaller than the one working with the original coordinates.