Thoughts on what to pay first.

[Firestx]

Hello folks,

 

This is our (my wife and I) first post. I was curious as to what I should pay first. My wife and I started our major overhaul of our finances today. We have approx $5500 (bonus from work) to pay off some debt. Coincidentally, we have a loan through NFCU for just about this amount ($5900 to be exact). However, we also have another $20k in credit card debt. Our monthly payment on the NFCU loan is $270 month. Should we apply the $5500 + cash in our bank account to pay off the loan and save $270 a month, or should we apply $5500 toward credit card debt? Thanks in advance for your help/advice.

[mariuszh]

What is your goal?

 

 

Saving money? Pay down the highest interest debt.

 

 

Maximizing FICO score? Pay down your credit cards.