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jwest1184

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Pay off car loan or credit cards? I understand more interest on credit cards
I'm debating on whether to target my credit card bills or my car loan bill first. I understand credit cards have a higher interest rate, however I will be able to transfer my two balanced to another card for 0% for 12 months. Additionally, once I pay my car off I will have a much more liquid money each month to apply directly at the credit card payments.

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Which option is more comfortable...

for YOU? Either option is legal for your inquiry. The bottom line is which one is more comfortable for you? It also might depend on the amount of the debt too. How much left on the car and how much left on the credit cards? 

If I were you, I would prioritize paying the debt with the highest interest first, while keeping all other payments current. It's just mathematics for me as a higher interest rate will cause you to pay more money in the long run. Again, I don't know your figures. Another option is to pay the lowest debt first, regardless of the interest rate, to give you a psychological boost to continue attacking the next lowest debt. 

Be careful, those who move debt from one card to another tend to be "lazy" with debt because they psychologically fool themselves that they have done something to reduce debt. Realistically, they just literally transfer and not do a thing to reduce the debt. But that 0% transfer scheme is so attractive! So don't put yourself into that mindset and be complacent. Debt is debt. Better to get rid of it as soon as possible than to move it around and risk incurring more debt then pushing your situation to move again and again.

But the question cannot be answered without your specific figures. 

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