Best way to pay off debt?

[samy2576]

I am getting a large payment this fall of 7,000 dollars and I want to use it to pay off debt. What would be the best way to do it?

I have:

credit card- $700

credit card- $1400

car loan- $6,000 (car is only worth 3k)

student loan- $14k

student loan- $2500

student loan- $9k

[CJIII29]

Pay off these three credit card- $700, credit card- $1400, student loan- $2500.

[denver133]

Pay off your revolving debt first.  Put some away into a savings account!!   

Continue to pay off as much of the student loan or car if its a super high interest rate.  

[VirtualCuriosity]

I personally would pay smallest balances first until I ran out.  You didn't mention any savings.  If I didn't have savings, I would set aside 1,000 for emergency needs only.  I would then pay off CC #1 700, CC #2 1400, Student Loan 2,500, and then the remaining 1,400 towards the car.  

You never mentioned income which is also important.  Also, you mentioned that this money is available in the Fall, so the balances should change by then.  Everyone has different opinions and some will say pay the highest interest first.  BUT, someone once said, if we were that concerned about math, we wouldn't really be in debt.  Whatever the case, good luck to you.

[takeshi74]

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@samy2576 wrote:

What would be the best way to do it?

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"Best" meaning what?  For scoring purposes you'll see a bigger improvement from reducing your revolving utilization.

For saving on interest best is to pay off higher interest first.

If you're upside down on the car then it would probably be good to address that.