Myth: Pay Off Your Student Loan Debt ASAP
Truth: The most urgent debt is the kind that charges the highest interest rates. Although $30,000 in student loans may feel like a lot—and you might be tempted to hack away at it as soon as possible—it’s more important to address that $500 in credit card debt first.
Here’s why: If, say, that $500 in credit card debt charges an interest rate of 15% and your students loans have an interest rate of 6%, you’re losing money much faster from the credit card issue. That’s where you should focus your energy first.
To create your own plan for paying off debt, use our free checklist. For more information on debt, check out the debt section of our Knowledge Center.