Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan? The Credit card has an intrest rate of 8.5% and the loan has a intrest rate of 16% for 5 yrs. Please advise.

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

I would pay off the cc debt. The loan, although it has a higher interest rate has a fixed term so you can pay the minimum and it WILL be paid off in five years...if you just pay the minimum on your credit card payments, it will take your grandkids a few years to get it paid off....

Now of course ALL of this is contingent upon you NOT charging anything again

If you think you will charge again, pay off the loan so that your credit card is still a painful reminder of debt.

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

I would pay off the first highest interest rate first, just send in the min on the other and once you pay off the first loan then combine what you were sending in and attack and pay off the second one, but for the time being put up the cc and donot use it

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

I%26#039;d pay off the credit card debt first. You can make payments on the loan and it will eventually get paid off. If you make minimum payments on the credit card it will take decades to pay it off.

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

The loan has a higher interest rate so it would make sense to pay the loan off first as that will save you the most money by saving you the most interest.

However, you need to check that there are no penalties for early repayment.

Another issue is fees. Include your annual credit card fee if you have one and any other charges, and then do the math again just to make sure the card is really only costing you 8.5%.

Also, are these rates fixed or variable? If your loan is fixed but your card is at a %26quot;honeymoon%26quot; rate and may go up, then pay it off as some credit card APRs are over 20%

The final thing to think about is temptation and how disciplined you can be. Paying off the credit card is pointless if you go on using it and get back into debt on it. Paying off the loan may be better as you cannot re-borrow the loan as easily as you can go on using your credit card.

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

Pay off the credit card, it was the best thing I ever did after college.

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

Is the CC interest rate fixed or is it a Promo rate? If fixed, pay off the loan first. Regardless of how you look at it, it%26#039;s 8.5% vs 16%. Do you really want to be paying an extra 7.5% for the next 5years? I think not.

As for the payments, the credit card you can pay off or down at any point, not just the %26quot;minimum payment%26quot;. Also most minimum payments now are 2-3% of the balance (for credit cards) so your payoff time will be about the same.

But yes pay off the HIGH INTEREST loan before the credit card. If you want credit in the future and the card is maxed out, then pay off half each.

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

Why not 50-50??? It doesn%26#039;t matter as long as you attack both debts to pay them off as quickly as possible and why not try to reduce the interest on both debts by asking or refinancing at lower rates???

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

If you are talking about having the ability to pay off the entire balance at once, then the loan. Because of the higher interest rate. You didn%26#039;t specify if the credit card interest rate is fixed or not.

Also, if you deceide the credit card, keep in mind never close out the card, it is necessary to have a credit card, for auto rentals, sometimes hotels will take credit cards only, and same thing for certain other purchases, airlines come to mind, maybe if you deceide on the credit card, because it is variable, pay off MOST of the bal, but remember part of your credit score is based on AVAILABLE credit to you. Therefore if you pay it down to $1,000 bal. and it is a $12,000 available limit you have increased your credit score by adding $11,000 to your available credit. This could also be a good argument for paying toward the credit card, just don%26#039;t close it out whatever you do, many people lower their credit scores unknowingly by paying off and CLOSING the account, pay off yes, close never.

One other thing. Interest rates are dropping fast, with the fed, and Mr. Bernanke on a printing money rampage to bail out the banks, this should help all credit card holders interest rates go down that are not fixed, and tied to an index.

That high fixed rate might be my target, or at least most of it, and maybe split it up, but keep that credit card. Remember also that your credit score is based on how you manage your debt also, so knocking down both, if possible a good idea.

Which debt should i pay off first, a $10,000 credit card or a $10,000 loan?

Your debt will still be accumulated because of the interest incurred. Try to figure out the best way by seeking professional advise.

Just for extra information, I have articles on Free Your Debts, Ways to avoid bankruptcy. Get advice from Debt consolidation or Debt settlement. Will it affect my Credit Score / FICO Score? More Information on http://avoid-bankruptcy-get-debt-consoli...