Currently I'm maintaining two loans – a car loan with $5,600 at 4.87% and a subsidized student loan of $7,800 at 6.9% interest rates. Which one should I pay off first? Please help me, as I've no clue. Thank you.

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You should pay off the debt having the highest interest rate first as the longer you wait the higher your debt amount will grow. If you are determined to completely pay off your debts, you must go with the one having higher rates.

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Last Updated on: Fri, 8 Jun 2018

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