What's the Right Order to Pay Off Debt?

                    

Here are five different types of debt, and how we prioritize them . . .

 

 

1.  40% said paying off your CREDIT CARDS should be the top priority.  Which makes sense, because they usually have the highest interest rates.

 

 

2.  28% said paying your MORTGAGE should be first.  You don't want to lose your house, so that makes sense too.

 

 

3.  7% said paying off their STUDENT LOANS is #1.  Those usually have a lower interest rate though, and you've got a long time to pay them.  So it's not the end of the world if you just have to do the minimum monthly payment for a while.

 

 

4.  4% said paying down a HOME EQUITY loan should be the top priority.  Not all homeowners have those though.

 

 

5.  3% said paying off their CAR loan is the most important thing.

 

 

Another 17% of people in the survey said they're not sure what the right order is, and the remaining 1% would choose to prioritize some other random debt.

 

 

(Trulia)


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