Well, it depends on a couple of things:
-Which debt is the smallest?
-Which debt is going to cost you more in interests!?
- If you have a six figure student loan debt and five figure or lower credit card debt, it’s best to pay off your credit cards first.
- For credit cards, you typically have a much higher interest rate, which will cost you a lot in the long term, hence, it’s best to pay them off first.
Reminder: It’s important to make sure that you stay current on both debts as they both end up on your credit report and will affect your credit score. Always pay at least minimum payments on all debts.
Tip: Get into the habit of tracking and planning your expenses and paying off your credit cards when payment is due.
Disclaimer: The post is for informational and educational purposes only. Please consult your financial adviser for appropriate financial advice.