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Pay off credit card or personal loan first?

Date: Sat, 01/29/2011 - 17:07

Submitted by Achilles
on Sat, 01/29/2011 - 17:07

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Total Replies: 1


Just found this site and have been reading a lot. I am making a very concerted effort to eliminate close to $50K in debt across 4 credit cards and a personal loan. In March, I expect to come into about $17K in cash. I have one credit card with balance of $16K and I already turned that into a fixed loan. The interest rate is at 9% and the fixed payment is $371/month. I also have a personal loan with about the same balance at 9.9%, and the monthly payment is $831. Would you suggest paying off the personal loan first and then turn around and use the $831 on the credit card? Seems to me that makes the most sense because it frees up the most cash the quickest.

Thanks for any feedback.

Frank