Not all debt is created equal, and when you’re looking to pay it down, the order in which you do so is important. Two common types of debt are student loans and credit cards. Are you wondering if you should pay off student loans or credit cards first?
Different Ways to Pay Down Debt
One of the first things that you should do when looking to pay down debt is to list out all of your amounts due. Gather the totals owed, the interest rates, the monthly payments, and all other information for each of your different debts. Then, you can make a plan for how to eliminate them.
Learn more about two popular methods – the debt snowball and debt avalanche.
In Most Cases, it Makes Sense to Pay Off Your Credit Cards First
There isn’t a single answer for whether it’s better to pay off student loans or credit cards first, but credit cards often have higher interest rates than student loans. The exact method you choose for paying down debt is less important than making a plan that you’ll stick to.
When it comes to money matters, it’s natural to have questions — lots of them. At SoFi Learn, you’ll find answers, plus tools, guides, calculators and more.
