Personal Loan Payoff vs Credit Card Debt Payoff

[Anonymous]

Hi All,

Is it better to pay off a personal loan first then tackle you credit cards or vice versa?

I have 2  personal loans and I have the means to pay an extra 400 maybe 500 to debt each month. If I pay off my loans which total 9,394 I'll have an extra 400.

Any advice is welcomed and thanks in advance. 

[trnl2016]

I'm not sure which is better, but I would personally pay off the credit cards first. Bringing the revolving credit utilization down benefits your score, while paying extra on a loan and/or paying it off early does not, necessarily.

[Anonymous]

Ok, great. Thanks for the input. 

[Anonymous]

---

@Anonymous wrote:

Hi All,

Is it better to pay off a personal loan first then tackle you credit cards or vice versa?

I have 2  personal loans and I have the means to pay an extra 400 maybe 500 to debt each month. If I pay off my loans which total 9,394 I'll have an extra 400.

Any advice is welcomed and thanks in advance. 

---

Depends on your goal. If immediate score increase is NEEDED, then pay of credit cards first. If htere is not IMMEDIATE need for score increase, then use the debt snowball method to pay highest interest items first.

[Anonymous]

Ok, thanks. i just looked that up and my credit cards are my highest interest so if I buckle down and stick with this plan I'm coming up with I should be done by March 2018