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Sep 1, 2018

I've got student loans and a car payment. How do I decide what to pay first?

1 comment

I want to start paying off my debts, but I don't know what I should pay off first. How do I decide??

Sep 3, 2018

This really comes down to personal preference. Paying off any debt is a good thing, so do whatever makes it easier for you to pay off debts!

 

Some people prefer an approach of taking their debt that has the highest interest rate. (This will typically be credit card debt or personal loans.) Other people prefer taking the debt that has the lowest amount left til it's paid off. (Dave Ramsey calls this the snowball effect... you pay off the smallest debt and then you get a win under your belt and go for the next one.)