Should I Pay Off Credit Card Or Personal Loan First

Should I Pay Off Credit Card Or Personal Loan First

To decide whether to pay off credit card or loan debt first, let your debts' interest rates guide you.

Credit cards generally have higher interest rates than most types of loans do. That means it's best to prioritize paying off credit card debt to prevent interest from piling up. Doing so can also help build credit, since reducing credit card debt directly impacts your credit utilization, one of the biggest contributing factors to your credit scores.

Here's how to figure out which debts to eliminate first—and the best ways to get rid of them, once and for all.