Not sure if this is the right place

[Anonymous]

So heres what i have going on...

1. I know nothing but what ive just read about FICO Score, and mine isnt high at all...

2. I am about to deploy soon so nows the time to get some stuff paid off.

3. Next summer i want to buy a house, or at least try to. I should have around $10000.00 saved up by then.

4. I have an auto loan for $21,148.64 @9.24% interest rate and a personal loan for $14,575.24 @18% interest rate.

Now, i cant decide on which to knock out first! I wont be able to pay both off, so i was thinking knock out the car first this way the extra money from it can go to the personal loan (including the extra money that will come from the insurance payments). This was before i checked the interest rates, should i still shoot for paying off the car first, especially since im looking at getting a house next summer?

[llecs]

There are two trains of thought in paying down debt: pay the higher interest first or pay down the lowest balances first. I always opt for the latter due to FICO scoring and you pay off more faster. In your case, the lowest balance accounts is your highest interest. I'd pay the personal loan first, while paying the minimum on the car. Once th eloan is paid, then snowball the loan payments into the car payments and it'll go away very quickly. Your DTI will improve quicker as possibly your FICO, due to having one less TL with a balance.

Be sure to keep some $$$ to the side for an emergency fund.