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Posted in Student Loans
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Question By
Kellyyy613

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Which loan should I pay off first?
I have a student loan that is lower interest that is ending in 2020 that i should be able to pay off in the next 6 months or so but I have made a lot of late payments in the past on it. I also have a very high interest car loan that will be ending in 2021 and the balance is higher than my student loan. Wondering if it makes more sense to pay down the car first or if I should go with my loan payoff first.

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Pay off the one that costs the most

Whichever one is going to suck up more of your money if you don't pay it off sooner--that's the one you should pay off. 
Expect your credit score to drop a bit when the loan is paid and closed. The benefit, credit-wise, to paying off this loan is you now have more money at your disposal and it will be easier to keep other credit accounts in good standing. 

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