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Coronavirus Cash Crisis: How Do I Decide Which Debt To Pay First?

The coronavirus pandemic prompted an unprecedented shutdown of the U.S. economy. Here's how experts think you should tackle your debt payments.
Posted at 2:33 PM, Apr 30, 2020

Coronavirus Cash Crisis: How should I decide which debt to pay off first?

"Target it at the loan with the highest interest rate. And that might not be a student loan, that might be a credit card debt that charges you 14% interest rate. And with credit cards, you don't really want to be carrying a balance from month to month. So try to pay that off as quickly as possible, because it's among the most expensive types of debt," said Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com.

"Some people feel more motivated by paying off their smallest debt first. Other people feel more motivated by paying off, focusing on their highest-interest rate debt and waiting till that's totally paid off to move on to the next level of debt. So it really is a personal choice. But the really most important thing is to have a plan, a strategy for paying it off, and to stick with it," said Kimberly Palmer, a personal finance expert at NerdWallet.